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.
Restaurant Brands (QSR)
Consensus Price Target: $76.32 (20.3% implied return)
Formed through a strategic merger, Restaurant Brands International (NYSE: QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.
Why Are We Wary of QSR?
- Estimated sales growth of 4.5% for the next 12 months implies demand will slow from its six-year trend
- Efficiency has decreased over the last year as its operating margin fell by 6.8 percentage points
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Restaurant Brands is trading at $63.43 per share, or 16.1x forward P/E. To fully understand why you should be careful with QSR, check out our full research report (it’s free).
Titan International (TWI)
Consensus Price Target: $11 (24% implied return)
Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
Why Do We Think TWI Will Underperform?
- Annual sales declines of 7.2% for the past two years show its products and services struggled to connect with the market during this cycle
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Titan International’s stock price of $8.87 implies a valuation ratio of 24.8x forward P/E. If you’re considering TWI for your portfolio, see our FREE research report to learn more.
Kforce (KFRC)
Consensus Price Target: $44.75 (35.6% implied return)
With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE: KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.
Why Is KFRC Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 9.2% annually over the last two years
- Sales were less profitable over the last two years as its earnings per share fell by 13.8% annually, worse than its revenue declines
- Waning returns on capital imply its previous profit engines are losing steam
At $33 per share, Kforce trades at 13.2x forward P/E. Dive into our free research report to see why there are better opportunities than KFRC.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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