3 of Wall Street's Favorite Stocks That Fall Short
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.
Jamf (JAMF)
Consensus Price Target: $17.45 (112% implied return)
Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.
Why Do We Think Twice About JAMF?
Revenue increased by 17.7% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
Average billings growth of 8.9% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
Suboptimal cost structure is highlighted by its history of operating margin losses
Jamf is trading at $8.22 per share, or 1.6x forward price-to-sales. Read our free research report to see why you should think twice about including JAMF in your portfolio, it's free.
Moderna (MRNA)
Consensus Price Target: $47.59 (47.1% implied return)
Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ:MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.
Why Do We Steer Clear of MRNA?
Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 309.9 percentage points
Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Moderna's stock price of $32.36 implies a valuation ratio of 6x forward price-to-sales. Check out our free in-depth research report to learn more about why MRNA doesn't pass our bar.
Kemper (KMPR)
Consensus Price Target: $82.20 (37% implied return)
Originally known as Unitrin until rebranding in 2011, Kemper (NYSE:KMPR) is an insurance holding company that provides automobile, homeowners, life, and other insurance products to individuals and businesses across the United States.
Why Do We Pass on KMPR?
Net premiums earned tumbled by 2.4% annually over the last four years, showing market trends are working against its favor during this cycle
Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 2.8% annually, worse than its revenue
Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 4.5% annually over the last five years
At $60 per share, Kemper trades at 1.3x forward P/B. If you're considering KMPR for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses.
Don't let fear keep you from great opportunities and take a look at Top 6 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).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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