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.

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 is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.

Two Stocks to Sell:

CooperCompanies (COO)

Consensus Price Target: $95.85 (39.7% implied return)

With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.

Why Does COO Give Us Pause?

1. Adjusted operating margin failed to increase over the last five years, indicating the company couldn’t optimize its expenses
2. 4.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. ROIC of 5.1% reflects management’s challenges in identifying attractive investment opportunities

At $68.60 per share, CooperCompanies trades at 16.3x forward P/E. To fully understand why you should be careful with COO, check out our full research report (it’s free).

Select Medical (SEM)

Consensus Price Target: $20.50 (34.1% implied return)

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE: SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Why Do We Pass on SEM?

1. Declining admissions over the past two years suggest it might have to lower prices to accelerate growth
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. 13.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Select Medical’s stock price of $15.29 implies a valuation ratio of 13.1x forward P/E. Dive into our free research report to see why there are better opportunities than SEM.

One Stock to Buy:

BellRing Brands (BRBR)

Consensus Price Target: $79.06 (25.6% implied return)

Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

Why Do We Love BRBR?

1. Stellar 20.8% growth in unit sales over the past two years demonstrates the high demand for its products
2. Earnings per share grew by 28% annually over the last three years and trumped its peers
3. Industry-leading 48.9% return on capital demonstrates management’s skill in finding high-return investments

BellRing Brands is trading at $62.95 per share, or 26.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.