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. That said, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where its enthusiasm might be excessive.

Two Stocks to Sell:

PENN Entertainment (PENN)

Consensus Price Target: $23.08 (62.4% implied return)

Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.

Why Should You Sell PENN?

1. Lackluster 1.4% annual revenue growth over the last two years indicates the company is losing ground to competitors

2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 21.4% annually while its revenue grew

3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $14.07 per share, PENN Entertainment trades at 25.7x forward price-to-earnings. If you’re considering PENN for your portfolio, see our FREE research report to learn more .

Bruker (BRKR)

Consensus Price Target: $73.19 (66.6% implied return)

With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ:BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.

Why Are We Hesitant About BRKR?

1. Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 4.6 percentage points

2. 7.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

3. Waning returns on capital imply its previous profit engines are losing steam

Bruker’s stock price of $36.10 implies a valuation ratio of 13.6x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than BRKR .

One Stock to Buy:

Badger Meter (BMI)

Consensus Price Target: $221.87 (14.5% implied return)

The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE:BMI) provides water control and measure equipment to various industries.