Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Travel + Leisure (TNL)

Consensus Price Target: $60.58 (24.6% implied return)

Formerly known as Wyndham Destinations, Travel + Leisure (NYSE: TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.

Why Are We Hesitant About TNL?

1. Performance surrounding its tours conducted has lagged its peers
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.8%
3. 8× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Travel + Leisure’s stock price of $48.62 implies a valuation ratio of 7.3x forward P/E. If you’re considering TNL for your portfolio, see our FREE research report to learn more.

AAR (AIR)

Consensus Price Target: $80.20 (21% implied return)

The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE: AIR) is a provider of aircraft maintenance services

Why Does AIR Give Us Pause?

1. Annual revenue growth of 3.9% over the last five years was below our standards for the industrials sector
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0.9% for the last five years
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $66.29 per share, AAR trades at 15.3x forward P/E. Read our free research report to see why you should think twice about including AIR in your portfolio.

Champion Homes (SKY)

Consensus Price Target: $84.64 (29.5% implied return)

Founded in 1951, Champion Homes (NYSE: SKY) is a manufacturer of modular homes and buildings in North America.

Why Does SKY Worry Us?

1. Underwhelming unit sales over the past two years suggest it might have to lower prices to accelerate growth
2. Earnings per share have contracted by 28.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Waning returns on capital imply its previous profit engines are losing steam

Champion Homes is trading at $65.38 per share, or 16.6x forward P/E. Check out our free in-depth research report to learn more about why SKY doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.