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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where consensus estimates seem disconnected from reality.
One Stock to Sell:
Kyndryl (KD)
Consensus Price Target: $37.60 (40% implied return)
Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE:KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.
Why Does KD Fall Short?
- Annual sales declines of 4.8% for the past five years show its products and services struggled to connect with the market during this cycle
- Low free cash flow margin of -0.4% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Negative returns on capital show that some of its growth strategies have backfired
Kyndryl is trading at $26.86 per share, or 8.2x forward P/E. If you’re considering KD for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Ibotta (IBTA)
Consensus Price Target: $28.29 (30.8% implied return)
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE:IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Why Are We Positive On IBTA?
- Rise in total redemptions indicates high demand for its offerings
- Additional sales over the last two years increased its profitability as the 292% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 48.6 percentage points over the last four years, providing additional flexibility for investments and share buybacks/dividends
Ibotta’s stock price of $21.63 implies a valuation ratio of 18.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
WisdomTree (WT)
Consensus Price Target: $14.79 (25.2% implied return)
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE:WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
Why Should You Buy WT?
- Impressive 17.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 57.1% outpaced its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $11.82 per share, WisdomTree trades at 12.8x forward P/E. Is now the time to initiate a position? 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 5 Growth Stocks for this month. 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).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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