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. Keeping that in mind, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Freshpet (FRPT)

Consensus Price Target: $165.17 (65% implied return)

Standing out from typical processed pet foods, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.

Why Does FRPT Worry Us?

1. Modest revenue base of $975.2 million gives it less fixed cost leverage and fewer distribution channels than larger companies

2. Negative free cash flow raises questions about the return timeline for its investments

3. Negative returns on capital show that some of its growth strategies have backfired

At $74.60 per share, Freshpet trades at 26.7x forward price-to-earnings. Check out our free in-depth research report to learn more about why FRPT doesn’t pass our bar .

Littelfuse (LFUS)

Consensus Price Target: $296.85 (66.5% implied return)

The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.

Why Is LFUS Risky?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.6% annually over the last two years

2. Sales were less profitable over the last two years as its earnings per share fell by 29% annually, worse than its revenue declines

3. Diminishing returns on capital suggest its earlier profit pools are drying up

Littelfuse is trading at $163.45 per share, or 16.1x forward price-to-earnings. Read our free research report to see why you should think twice about including LFUS in your portfolio, it’s free .

Kforce (KFRC)

Consensus Price Target: $64.75 (36.2% implied return)

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE:KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Why Do We Think KFRC Will Underperform?

1. Annual sales declines of 9.4% for the past two years show its products and services struggled to connect with the market during this cycle

2. Earnings per share fell by 13.1% annually over the last five years while its revenue was flat, showing each sale was less profitable

3. Waning returns on capital imply its previous profit engines are losing steam