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.
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.
DraftKings (DKNG)
Consensus Price Target: $44.50 (30.8% implied return)
Getting its start in daily fantasy sports, DraftKings (NASDAQ: DKNG) is a digital sports entertainment and gaming company.
Why Are We Wary of DKNG?
- Sluggish trends in its monthly unique players suggest customers aren’t adopting its solutions as quickly as the company hoped
- Poor expense management has led to operating margin losses
- Projected 1.1 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
At $34.03 per share, DraftKings trades at 30.6x forward P/E. Read our free research report to see why you should think twice about including DKNG in your portfolio.
Zevia (ZVIA)
Consensus Price Target: $4.90 (91% implied return)
With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE: ZVIA) is a better-for-you beverage company.
Why Are We Hesitant About ZVIA?
- Sales stagnated over the last three years and signal the need for new growth strategies
- Subscale operations are evident in its revenue base of $162.8 million, meaning it has fewer distribution channels than its larger rivals
- Persistent operating margin losses suggest the business manages its expenses poorly
Zevia is trading at $2.57 per share, or 313.7x forward EV-to-EBITDA. If you’re considering ZVIA for your portfolio, see our FREE research report to learn more.
Gray Television (GTN)
Consensus Price Target: $6.40 (39% implied return)
Specializing in local media coverage, Gray Television (NYSE: GTN) is a broadcast company supplying digital media to various markets in the United States.
Why Is GTN Risky?
- Annual revenue growth of 9.1% over the last five years was below our standards for the consumer discretionary sector
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Gray Television’s stock price of $4.61 implies a valuation ratio of 0.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than GTN.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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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