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. That said, here is one stock where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Carrier Global (CARR)

Consensus Price Target: $77.82 (24.2% implied return)

Founded by the inventor of air conditioning, Carrier Global (NYSE: CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Why Do We Think CARR Will Underperform?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Earnings per share have contracted by 8.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $62.64 per share, Carrier Global trades at 20.6x forward P/E. If you’re considering CARR for your portfolio, see our FREE research report to learn more.

Elanco (ELAN)

Consensus Price Target: $31.21 (32.4% implied return)

Originally established as a division of pharmaceutical giant Eli Lilly before becoming independent in 2018, Elanco Animal Health (NYSE: ELAN) develops and sells medications, vaccines, and other health products for pets and farm animals across more than 90 countries.

Why Are We Hesitant About ELAN?

1. Muted 2% annual revenue growth over the last five years shows its demand lagged behind its healthcare peers
2. Efficiency has decreased over the last five years as its adjusted operating margin fell by 3.5 percentage points
3. Negative returns on capital show management lost money while trying to expand the business

Elanco is trading at $23.57 per share, or 19.1x forward P/E. To fully understand why you should be careful with ELAN, check out our full research report (it’s free).

One Stock to Watch:

Ulta (ULTA)

Consensus Price Target: $623.42 (21.9% implied return)

Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ: ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.

Why Are We Positive on ULTA?

1. Fast expansion of new stores to reach markets with few or no locations is justified by its same-store sales growth
2. Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.5% growth over the past two years
3. Industry-leading 32.6% return on capital demonstrates management’s skill in finding high-return investments

Ulta’s stock price of $511.38 implies a valuation ratio of 17.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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.

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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.