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 consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Krispy Kreme (DNUT)
Consensus Price Target: $4.25 (22.1% implied return)
Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ:DNUT) is one of the most beloved and well-known fast-food chains in the world.
Why Do We Avoid DNUT?
- Lackluster 6.2% annual revenue growth over the last seven years indicates the company is losing ground to competitors
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- 8× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Krispy Kreme’s stock price of $3.48 implies a valuation ratio of 49x forward P/E. Check out our free in-depth research report to learn more about why DNUT doesn’t pass our bar.
Liberty Energy (LBRT)
Consensus Price Target: $29.04 (52.4% implied return)
Operating approximately 40 active fleets across North America's most productive shale basins, Liberty Energy (NYSE:LBRT) provides hydraulic fracturing services that help oil and gas companies extract resources from shale formations.
Why Are We Wary of LBRT?
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 23.3%
- Poor free cash flow margin of 1.9% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $19.06 per share, Liberty Energy trades at 78x forward P/E. To fully understand why you should be careful with LBRT, check out our full research report (it’s free).
One Stock to Watch:
Dutch Bros (BROS)
Consensus Price Target: $77.76 (55.4% implied return)
Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE:BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.
Why Does BROS Catch Our Eye?
- Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance
- Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 6% over the past two years
- Market share will likely rise over the next 12 months as its expected revenue growth of 27.8% is robust
Dutch Bros is trading at $50.05 per share, or 43.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.