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. Keeping that in mind, here are three stocks where Wall Street may be overlooking some important risks and some alternatives with better fundamentals.

Dayforce (DAY)

Consensus Price Target: $83.17 (41.5% implied return)

Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE:DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.

Why Is DAY Not Exciting?

1. Sales trends were unexciting over the last three years as its 19.8% annual growth was below the typical software company

2. Gross margin of 50.7% is way below its competitors, leaving less money to invest in areas like marketing and R&D

3. Efficiency has decreased over the last year as its operating margin fell by 2.9 percentage points

Dayforce is trading at $53.33 per share, or 4.6x forward price-to-sales. If you’re considering DAY for your portfolio, see our FREE research report to learn more .

Ralph Lauren (RL)

Consensus Price Target: $246.15 (40.5% implied return)

Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.

Why Does RL Worry Us?

1. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track

2. Estimated sales growth of 3.7% for the next 12 months is soft and implies weaker demand

3. Projected 2.6 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

Ralph Lauren’s stock price of $200.13 implies a valuation ratio of 15.2x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than RL .

Ameresco (AMRC)

Consensus Price Target: $35.90 (134% implied return)

Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors.

Why Are We Wary of AMRC?

1. Annual sales declines of 1.5% for the past two years show its products and services struggled to connect with the market during this cycle

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

3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders