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 two stocks likely to meet or exceed Wall Street’s lofty expectations and one where consensus estimates seem disconnected from reality.

One Stock to Sell:

Edgewell Personal Care (EPC)

Consensus Price Target: $40.63 (24.8% implied return)

Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE:EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.

Why Should You Sell EPC?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue
3. Capital intensity has ramped up over the last year as its free cash flow margin decreased by 2.7 percentage points

At $28.95 per share, Edgewell Personal Care trades at 9.1x forward price-to-earnings. Read our free research report to see why you should think twice about including EPC in your portfolio, it’s free.

Two Stocks to Watch:

Karat Packaging (KRT)

Consensus Price Target: $33 (26.6% implied return)

Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.

Why Could KRT Be a Winner?

1. Earnings per share have massively outperformed its peers over the last three years, increasing by 19% annually
2. Free cash flow margin grew by 18 percentage points over the last five years, giving the company more chips to play with
3. Industry-leading 15.6% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities

Karat Packaging’s stock price of $24.88 implies a valuation ratio of 13.7x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.

United Therapeutics (UTHR)

Consensus Price Target: $404.16 (43.1% implied return)

Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ:UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.

Why Do We Like UTHR?

1. Annual revenue growth of 21.9% over the past two years was outstanding, reflecting market share gains this cycle
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
3. Improving returns on capital reflect management’s ability to monetize investments

United Therapeutics is trading at $279.95 per share, or 9.2x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.