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3 of Wall Street’s Favorite Stocks That Concern Us

CVSA Cover Image

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.

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.

Covista (CVSA)

Consensus Price Target: $153.75 (34.6% implied return)

Formerly known as DeVry Education Group, Covista (NYSE: CVSA) is a global provider of workforce solutions and educational services.

Why Do We Think CVSA Will Underperform?

  1. Sales trends were unexciting over the last five years as its 13.9% annual growth was below the typical consumer discretionary company
  2. Projected 3.8 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
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

Covista’s stock price of $114.27 implies a valuation ratio of 14.6x forward P/E. Check out our free in-depth research report to learn more about why CVSA doesn’t pass our bar.

Connection (CNXN)

Consensus Price Target: $76 (21.2% implied return)

Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ: CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.

Why Should You Sell CNXN?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 3.3% annually
  3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3.3% for the last five years

Connection is trading at $62.70 per share, or 16.4x forward P/E. Read our free research report to see why you should think twice about including CNXN in your portfolio.

Jefferies (JEF)

Consensus Price Target: $52.83 (16.8% implied return)

Tracing its roots back to 1962 and rebranded from Leucadia National Corporation in 2018, Jefferies Financial Group (NYSE: JEF) is a global investment banking and capital markets firm that provides advisory services, securities trading, and asset management to corporations, institutions, and wealthy individuals.

Why Does JEF Worry Us?

  1. 1.8% annual revenue growth over the last five years was slower than its financials peers
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 7.2% annually while its revenue grew

At $45.25 per share, Jefferies trades at 11.6x forward P/E. Dive into our free research report to see why there are better opportunities than JEF.

Stocks We Like More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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