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.

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’s enthusiasm may be misplaced and some other investments worth exploring instead.

Kimball Electronics (KE)

Consensus Price Target: $24 (60.1% implied return)

Founded in 1961, Kimball Electronics (NYSE:KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.

Why Do We Think KE Will Underperform?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle

2. Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term

3. Poor free cash flow margin of -0.7% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $13.27 per share, Kimball Electronics trades at 8.4x forward price-to-earnings. To fully understand why you should be careful with KE, check out our full research report (it’s free) .

Amentum (AMTM)

Consensus Price Target: $28.33 (31.8% implied return)

With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE:AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.

Why Is AMTM Risky?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4% over the last two years was below our standards for the business services sector

2. Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its two-year trend

3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 1.8% for the last three years

Amentum’s stock price of $18.42 implies a valuation ratio of 8.5x forward price-to-earnings. Read our free research report to see why you should think twice about including AMTM in your portfolio, it’s free .

Accenture (ACN)

Consensus Price Target: $385.11 (27.9% implied return)

With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE:ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.