
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.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.
Two Stocks to Sell:
International Paper (IP)
Consensus Price Target: $39.36 (25% implied return)
Established in 1898, International Paper (NYSE: IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
Why Do We Pass on IP?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.9% for the last five years
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 15.5% annually
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
International Paper is trading at $31.50 per share, or 18x forward P/E. Check out our free in-depth research report to learn more about why IP doesn’t pass our bar.
Kemper (KMPR)
Consensus Price Target: $51 (71.9% implied return)
Originally known as Unitrin until rebranding in 2011, Kemper (NYSE: KMPR) is an insurance holding company that provides automobile, homeowners, life, and other insurance products to individuals and businesses across the United States.
Why Are We Out on KMPR?
- 1.8% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
- Sales were less profitable over the last five years as its earnings per share fell by 17.5% annually, worse than its revenue declines
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 7.6% annually over the last five years
At $29.67 per share, Kemper trades at 0.6x forward P/B. Read our free research report to see why you should think twice about including KMPR in your portfolio.
One Stock to Watch:
Cardinal Health (CAH)
Consensus Price Target: $245.27 (21.7% implied return)
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE: CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.
Why Are We Fans of CAH?
- Massive revenue base in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Demand will likely accelerate over the next 12 months as its forecasted revenue growth of 9% is above its two-year trend
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 12.4% exceeded its revenue gains over the last five years
Cardinal Health’s stock price of $201.50 implies a valuation ratio of 17.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
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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.
