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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. Keeping that in mind, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where consensus estimates seem disconnected from reality.

One Stock to Sell:

Edgewell Personal Care (EPC)

Consensus Price Target: $40.63 (24.8% implied return)

Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE:EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.

Why Should You Sell EPC?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy

2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue

3. Capital intensity has ramped up over the last year as its free cash flow margin decreased by 2.7 percentage points

At $28.95 per share, Edgewell Personal Care trades at 9.1x forward price-to-earnings. Read our free research report to see why you should think twice about including EPC in your portfolio, it’s free .

Two Stocks to Watch:

Karat Packaging (KRT)

Consensus Price Target: $33 (26.6% implied return)

Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.

Why Could KRT Be a Winner?

1. Earnings per share have massively outperformed its peers over the last three years, increasing by 19% annually

2. Free cash flow margin grew by 18 percentage points over the last five years, giving the company more chips to play with

3. Industry-leading 15.6% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities

Karat Packaging’s stock price of $24.88 implies a valuation ratio of 13.7x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free .

United Therapeutics (UTHR)

Consensus Price Target: $404.16 (43.1% implied return)

Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ:UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.