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.

Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here are three stocks where Wall Street’s enthusiasm may be misplaced and some other investments worth exploring instead.

Kemper (KMPR)

Consensus Price Target: $36.33 (40.4% implied return)

Originally known as Unitrin until rebranding in 2011, Kemper (NYSE: KMPR) is an insurance holding company that provides automobile, homeowners, life, and other insurance products to individuals and businesses across the United States.

Why Is KMPR Risky?

1. Net premiums earned contracted by 3.3% annually over the last five years, showing unfavorable market dynamics this cycle
2. Sales were less profitable over the last five years as its earnings per share fell by 14.5% annually, worse than its revenue declines
3. Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 11.3% annually over the last five years

Kemper’s stock price of $25.88 implies a valuation ratio of 0.7x forward P/B. Check out our free in-depth research report to learn more about why KMPR doesn’t pass our bar.

National Bank Holdings (NBHC)

Consensus Price Target: $46.50 (19.7% implied return)

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

Why Does NBHC Worry Us?

1. Annual revenue growth of 6.1% over the last two years was below our standards for the banking sector
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 2.5% annually
3. Muted 1.8% annual tangible book value per share growth over the last five years shows its capital generation lagged behind its banking peers

At $38.86 per share, National Bank Holdings trades at 1x forward P/B. Dive into our free research report to see why there are better opportunities than NBHC.

Franklin BSP Realty Trust (FBRT)

Consensus Price Target: $11.67 (79.6% implied return)

Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.

Why Are We Bearish on FBRT?

1. Loans are facing significant end-market challenges during this cycle as net interest income has declined by 2.3% annually over the last five years
2. Earnings per share have contracted by 28.6% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
3. Underwhelming 4.2% return on equity reflects management’s difficulties in finding profitable growth opportunities

Franklin BSP Realty Trust is trading at $6.50 per share, or 0.4x forward P/B. Read our free research report to see why you should think twice about including FBRT in your portfolio.

Stocks We Like More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.