3 of Wall Street’s Favorite Stocks That Concern Us

Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Accel Entertainment (ACEL)

Consensus Price Target: $14.80 (32.4% implied return)

Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Why Should You Sell ACEL?

1. Performance surrounding its video gaming terminals sold has lagged its peers
2. Poor free cash flow margin of 4.8% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Stagnant returns on capital show management has failed to improve the company’s business quality

Accel Entertainment’s stock price of $11.18 implies a valuation ratio of 12.9x forward P/E. To fully understand why you should be careful with ACEL, check out our full research report (it’s free for active Edge members).

Funko (FNKO)

Consensus Price Target: $4.25 (41.2% implied return)

Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ:FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.

Why Are We Out on FNKO?

1. Annual revenue growth of 7.7% over the last five years was below our standards for the consumer discretionary sector
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

At $3.01 per share, Funko trades at 4.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FNKO.

Bio-Techne (TECH)

Consensus Price Target: $69.67 (18.1% implied return)

With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ:TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.

Why Do We Avoid TECH?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Revenue base of $1.22 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 11.6 percentage points

Bio-Techne is trading at $58.98 per share, or 28.8x forward P/E. To fully understand why you should be careful with TECH, check out our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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