1 of Wall Street’s Favorite Stock to Target This Week and 2 We Avoid

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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 excitement appears well-founded and two where its enthusiasm might be excessive.

Two Stocks to Sell:

Shutterstock (SSTK)

Consensus Price Target: $28.85 (75% implied return)

Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE: SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.

Why Should You Sell SSTK?

  1. Customer spending has dipped by 87.9% on average as it focused on growing its requests
  2. Estimated sales decline of 13.7% for the next 12 months implies a challenging demand environment
  3. Earnings per share fell by 6.3% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable

Shutterstock’s stock price of $16.49 implies a valuation ratio of 1.3x forward price-to-gross profit. Read our free research report to see why you should think twice about including SSTK in your portfolio.

Brookdale (BKD)

Consensus Price Target: $19.10 (47.2% implied return)

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Why Does BKD Fall Short?

  1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
  2. Sales are projected to tank by 4.4% over the next 12 months as demand evaporates
  3. High net-debt-to-EBITDA ratio of 11× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Brookdale is trading at $12.98 per share, or 15.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BKD doesn’t pass our bar.

One Stock to Buy:

Eli Lilly (LLY)

Consensus Price Target: $1,210 (22.2% implied return)

Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.

Why Do We Love LLY?

  1. Annual revenue growth of 41.8% over the past two years was outstanding, reflecting market share gains this cycle
  2. Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 29.6% exceeded its revenue gains over the last five years

At $990.36 per share, Eli Lilly trades at 26.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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