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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks.
Two stocks to sell:
Carrier Global (CARR)
Consensus Price Target: $73.01 (29.8% implied return)
Founded by the inventor of air conditioning, Carrier Global (NYSE: CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.
Why Are We Out on CARR?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $56.25 per share, Carrier Global trades at 18.5x forward P/E. Check out our free in-depth research report to learn more about why CARR doesn’t pass our bar.
Surgery Partners (SGRY)
Consensus Price Target: $18.82 (21% implied return)
With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ: SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.
Why Is SGRY Not Exciting?
- Underwhelming unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Sales are projected to tank by 5.5% over the next 12 months as demand evaporates
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Surgery Partners is trading at $15.55 per share, or 59.2x forward P/E. Read our free research report to see why you should think twice about including SGRY in your portfolio.
One stock to buy:
ITT (ITT)
Consensus Price Target: $257.77 (37% implied return)
Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE: ITT) provides motion and fluid handling equipment for various industries.
Why Is ITT a Top Pick?
- Annual revenue growth of 16.9% over the past two years was outstanding, reflecting market share gains this cycle
- Market share is on track to rise over the next 12 months as its 23% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings per share grew by 17% annually over the last two years and trumped its peers
ITT’s stock price of $188.22 implies a valuation ratio of 22.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-quality stocks for all market conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
