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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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

L.B. Foster (FSTR)

Consensus Price Target: $35 (47% implied return)

Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

Why Do We Steer Clear of FSTR?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.5% annually over the last five years

2. Poor free cash flow margin of 0.8% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

L.B. Foster’s stock price of $19.73 implies a valuation ratio of 4.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why FSTR doesn’t pass our bar.

Plug Power (PLUG)

Consensus Price Target: $3.92 (134% implied return)

Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ:PLUG) provides hydrogen fuel cells used to power electric motors.

Why Do We Pass on PLUG?

1. Annual revenue growth of 1.3% over the last two years was below our standards for the industrials sector

2. Free cash flow margin dropped significantly over the last five years, implying the company became more capital intensive as competition picked up

3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $0.93 per share, Plug Power trades at 1x forward price-to-sales. To fully understand why you should be careful with PLUG, check out our full research report (it’s free).

GoodRx (GDRX)

Consensus Price Target: $6.88 (41.9% implied return)

Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ:GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.

Why Are We Out on GDRX?

1. Sales trends were unexciting over the last two years as its 1.7% annual growth was below the typical healthcare company

2. Revenue base of $792.3 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale

3. Push for growth has led to negative returns on capital, signaling value destruction