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.

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 are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where analysts may be overlooking some important risks.

One Stock to Sell:

Danaher (DHR)

Consensus Price Target: $283.31 (34.5% implied return)

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE:DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Why Are We Cautious About DHR?

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 be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.2%

3. Adjusted operating profits fell over the last two years as its sales dropped and it struggled to adjust its fixed costs

Danaher’s stock price of $190.66 implies a valuation ratio of 23.6x forward price-to-earnings. If you’re considering DHR for your portfolio, see our FREE research report to learn more .

Two Stocks to Watch:

Robinhood (HOOD)

Consensus Price Target: $50.65 (42.6% 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 Are We Backing HOOD?

1. 43.9% annual increases in its average revenue per user over the last two years show its platform is resonating with power users

2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 30.5% over the last three years outstripped its revenue performance

3. Free cash flow margin increased by 1,059.8 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Robinhood is trading at $41.18 per share, or 21.6x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free .

Zoetis (ZTS)

Consensus Price Target: $208.60 (35.1% implied return)

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.