The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

Seagate Technology (STX)

Consensus Price Target: $113.29 (53.2% implied return)

The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ:STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.

Why Is STX Risky?

1. Annual sales declines of 4.2% for the past five years show its products and services struggled to connect with the market during this cycle

2. High input costs result in an inferior gross margin of 26% that must be offset through higher volumes

3. Poor expense management has led to an operating margin of 7.3% that is below the industry average

At $72.68 per share, Seagate Technology trades at 8.8x forward price-to-earnings. To fully understand why you should be careful with STX, check out our full research report (it’s free) .

MarineMax (HZO)

Consensus Price Target: $38.50 (108% implied return)

Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE:HZO) sells boats, yachts, and other marine products.

Why Does HZO Worry Us?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations

2. Cash burn makes us question whether it can achieve sustainable long-term growth

3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

MarineMax is trading at $17.85 per share, or 7x forward price-to-earnings. If you’re considering HZO for your portfolio, see our FREE research report to learn more .

Mirion (MIR)

Consensus Price Target: $19.20 (41.2% implied return)

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE:MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Why Is MIR Not Exciting?

1. Revenue base of $860.8 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale

2. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 7.6 percentage points

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