Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock where Wall Street’s excitement appears well-founded and two where its enthusiasm might be excessive.
Two Stocks to Sell:
Kemper (KMPR)
Consensus Price Target: $51 (75.1% 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 Do We Steer Clear of KMPR?
- 1.8% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 17.5% annually, worse than its revenue
- Annual book value per share declines of 7.6% for the past five years show its capital management struggled during this cycle
Kemper is trading at $29.13 per share, or 0.7x forward P/B. Read our free research report to see why you should think twice about including KMPR in your portfolio.
Select Water Solutions (WTTR)
Consensus Price Target: $22.50 (23.6% implied return)
Managing over 24 billion barrels of produced water annually across major U.S. shale plays, Select Water Solutions (NYSE: WTTR) provides water sourcing, recycling, disposal, and treatment services for oil and gas producers.
Why Do We Think Twice About WTTR?
- Subscale operations are evident in its revenue base of $1.40 billion, meaning it has fewer distribution channels than its larger rivals
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 23.5%
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $18.21 per share, Select Water Solutions trades at 35.2x forward P/E. Check out our free in-depth research report to learn more about why WTTR doesn’t pass our bar.
One Stock to Buy:
Robinhood (HOOD)
Consensus Price Target: $119.51 (36.7% implied return)
With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why Is HOOD a Good Business?
- Strong engagement trends coupled with 91.2% annual growth in its average revenue per user demonstrate its platform’s stickiness with die-hard customers
- Share buybacks catapulted its annual earnings per share growth to 395%, which outperformed its revenue gains over the last three years
- Strong free cash flow margin of 55% enables it to reinvest or return capital consistently
Robinhood’s stock price of $87.42 implies a valuation ratio of 26.6x forward EV/EBITDA. 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 meet 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 (+1,460% 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.
