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.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where its enthusiasm might be excessive.

Two Stocks to Sell:

KeyCorp (KEY)

Consensus Price Target: $26.02 (25.3% implied return)

Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.

Why Are We Wary of KEY?

1. Muted 3.8% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 5.9% annually while its revenue grew
3. Tangible book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle

At $20.78 per share, KeyCorp trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including KEY in your portfolio.

Walker & Dunlop (WD)

Consensus Price Target: $57 (49% implied return)

Originating as a small mortgage banking firm during the Great Depression in 1937, Walker & Dunlop (NYSE: WD) provides commercial real estate financing, property sales, appraisal, and investment management services with a focus on multifamily properties.

Why Do We Steer Clear of WD?

1. Loans are facing significant end-market challenges during this cycle as net interest income has declined by 41.6% annually over the last five years
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 13.7% annually
3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 8.5% annually over the last five years

Walker & Dunlop’s stock price of $38.25 implies a valuation ratio of 0.7x forward P/B. Check out our free in-depth research report to learn more about why WD doesn’t pass our bar.

One Stock to Buy:

AAR (AIR)

Consensus Price Target: $145.20 (28.4% implied return)

The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE: AIR) is a provider of aircraft maintenance services

Why Is AIR a Top Pick?

1. Impressive 19.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 23.2% annually

AAR is trading at $113.06 per share, or 19.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.