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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, 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:

Figs (FIGS)

Consensus Price Target: $5.72 (11.2% implied return)

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE:FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Why Are We Cautious About FIGS?

1. Number of active customers has disappointed over the past two years, indicating weak demand for its offerings

2. Forecasted revenue decline of 1.8% for the upcoming 12 months implies demand will fall off a cliff

3. Negative returns on capital show that some of its growth strategies have backfired

Figs is trading at $4.47 per share, or 49.1x forward price-to-earnings. If you’re considering FIGS for your portfolio, see our FREE research report to learn more .

Steelcase (SCS)

Consensus Price Target: $16.50 (62.1% implied return)

Founded in 1912 when metal office furniture was replacing wooden alternatives, Steelcase (NYSE:SCS) is a global office furniture manufacturer that designs and produces workplace solutions including desks, chairs, architectural products, and services.

Why Should You Sell SCS?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.2% annually over the last five years

2. Earnings per share have contracted by 5.8% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance

3. ROIC of 6.4% reflects management’s challenges in identifying attractive investment opportunities

At $10.18 per share, Steelcase trades at 9.3x forward price-to-earnings. Check out our free in-depth research report to learn more about why SCS doesn’t pass our bar .

One Stock to Buy:

Nvidia (NVDA)

Consensus Price Target: $172.68 (46.4% implied return)

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.