1 of Wall Street's Favorite Stock Worth Your Attention and 2 We Find Risky

Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

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 where Wall Street’s excitement appears well-founded and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Keurig Dr Pepper (KDP)

Consensus Price Target: $34.73 (29% implied return)

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Why Are We Cautious About KDP?

1. Sizable revenue base leads to growth challenges as its 5.8% annual revenue increases over the last three years fell short of other consumer staples companies
2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 5.9 percentage points
3. Underwhelming 5.8% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $26.92 per share, Keurig Dr Pepper trades at 12.9x forward P/E. To fully understand why you should be careful with KDP, check out our full research report (it’s free for active Edge members).

CoStar (CSGP)

Consensus Price Target: $91.94 (33.5% implied return)

With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.

Why Does CSGP Fall Short?

1. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually
2. Free cash flow margin shrank by 17.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

CoStar’s stock price of $68.88 implies a valuation ratio of 56x forward P/E. Read our free research report to see why you should think twice about including CSGP in your portfolio.

One Stock to Buy:

LendingClub (LC)

Consensus Price Target: $21.91 (25.8% implied return)

Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub (NYSE:LC) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.

Why Will LC Beat the Market?

1. Annual revenue growth of 24.7% over the past five years was outstanding, reflecting market share gains this cycle
2. Earnings per share grew by 38.3% annually over the last two years, massively outpacing its peers

LendingClub is trading at $17.42 per share, or 11.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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