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.
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 estimates seem disconnected from reality and some better opportunities to consider.
Clover Health (CLOV)
Consensus Price Target: $4.69 (58.4% implied return)
Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Why Are We Cautious About CLOV?
- Sales tumbled by 28.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Customer additions have disappointed over the past two years, indicating the company’s value proposition may not be resonating
- Negative free cash flow raises questions about the return timeline for its investments
At $2.96 per share, Clover Health trades at 39.8x forward EV-to-EBITDA. If you’re considering CLOV for your portfolio, see our FREE research report to learn more.
Evolent Health (EVH)
Consensus Price Target: $15.31 (54.6% implied return)
Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.
Why Do We Think Twice About EVH?
- Projected sales decline of 10.1% for the next 12 months points to a tough demand environment ahead
- Poor free cash flow margin of 0.6% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Negative returns on capital show management lost money while trying to expand the business
Evolent Health is trading at $9.90 per share, or 17.9x forward P/E. Check out our free in-depth research report to learn more about why EVH doesn’t pass our bar.
Berkshire Hills Bancorp (BHLB)
Consensus Price Target: $31.66 (26.4% implied return)
Founded in 1846 as a community financial institution in Massachusetts, Berkshire Hills Bancorp (NYSE: BHLB) is a regional bank holding company that provides commercial banking, retail banking, wealth management, and lending services through branches across the Northeast.
Why Are We Hesitant About BHLB?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Net interest income trends were unexciting over the last five years as its 2.3% annual growth was below the typical bank company
- Tangible book value per share is projected to decrease by 13.3% over the next 12 months as capital generation weakens
Berkshire Hills Bancorp’s stock price of $25.04 implies a valuation ratio of 0.9x forward P/B. If you’re considering BHLB for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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 183% over the last five years (as of March 31st 2025).
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