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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. That said, here are two stocks likely to meet or exceed Wall Street’s lofty expectations and one where consensus estimates seem disconnected from reality.

One Stock to Sell:

First Watch (FWRG)

Consensus Price Target: $20.91 (21.9% implied return)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

Why Does FWRG Fall Short?

1. Cash burn has widened over the last year, making us question whether it can reliably generate shareholder value

2. Low returns on capital reflect management’s struggle to allocate funds effectively

3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $17.15 per share, First Watch trades at 44.1x forward P/E. To fully understand why you should be careful with FWRG, check out our full research report (it’s free).

Two Stocks to Watch:

FTAI Aviation (FTAI)

Consensus Price Target: $165.59 (41.6% implied return)

With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ:FTAI) sells, leases, maintains, and repairs aircraft engines.

Why Are We Backing FTAI?

1. Impressive 44.9% annual revenue growth over the last two years indicates it’s winning market share this cycle

2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 73.8% outpaced its revenue gains

3. Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day

FTAI Aviation’s stock price of $116.92 implies a valuation ratio of 20.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Cadre (CDRE)

Consensus Price Target: $43.83 (22.5% implied return)

Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.

Why Does CDRE Stand Out?

1. Solid 9.7% annual revenue growth over the last two years indicates its offering’s solve complex business issues

2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 19.3%

3. Earnings per share grew by 19.7% annually over the last two years and trumped its peers