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 positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.

Two Stocks to Sell:

J. M. Smucker (SJM)

Consensus Price Target: $121.73 (35.1% implied return)

Best known for its fruit jams and spreads, J.M Smucker (NYSE: SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.

Why Should You Sell SJM?

1. Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 11.4 percentage points
3. Underwhelming 0.8% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up

J. M. Smucker’s stock price of $90.08 implies a valuation ratio of 9x forward P/E. Dive into our free research report to see why there are better opportunities than SJM.

AECOM (ACM)

Consensus Price Target: $124.08 (45.6% implied return)

Founded in 1990 when a group of engineers from five companies decided to merge, AECOM (NYSE: ACM) provides various infrastructure consulting services.

Why Is ACM Not Exciting?

1. Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 4% declines over the past two years
2. Poor expense management has led to an operating margin of 4.8% that is below the industry average
3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 4.4% for the last five years

At $85.22 per share, AECOM trades at 13.9x forward P/E. Read our free research report to see why you should think twice about including ACM in your portfolio.

One Stock to Watch:

Distribution Solutions (DSGR)

Consensus Price Target: $35.50 (28.7% implied return)

Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Why Are We Positive On DSGR?

1. Annual revenue growth of 39.4% over the past four years was outstanding, reflecting market share gains this cycle
2. Solid gross margin and unit economics free up capital for marketing and product development efforts
3. Share buybacks catapulted its annual earnings per share growth to 16.7%, which outperformed its revenue gains over the last two years

Distribution Solutions is trading at $27.59 per share, or 18.1x forward P/E. Is now the right time to buy? Find out in our full 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.