
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?
- Customer spending has dipped by 87.9% on average as it focused on growing its requests
- Estimated sales decline of 13.7% for the next 12 months implies a challenging demand environment
- 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?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Sales are projected to tank by 4.4% over the next 12 months as demand evaporates
- 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?
- Annual revenue growth of 41.8% over the past two years was outstanding, reflecting market share gains this cycle
- Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- 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.