
When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. That said, here is one stock where you should be greedy instead of fearful and two where the skepticism is well-placed.
Two Stocks to Sell:
Winnebago (WGO)
Consensus Price Target: $49.33 (4.4% implied return)
Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE: WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.
Why Do We Steer Clear of WGO?
- Sales tumbled by 6.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 10.1% annually
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $47.27 per share, Winnebago trades at 18.8x forward P/E. To fully understand why you should be careful with WGO, check out our full research report (it’s free).
Allegion (ALLE)
Consensus Price Target: $181.27 (1.3% implied return)
Allegion plc (NYSE: ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.
Why Are We Wary of ALLE?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Anticipated sales growth of 7.3% for the next year implies demand will be shaky
- Eroding returns on capital suggest its historical profit centers are aging
Allegion is trading at $178.94 per share, or 20.7x forward P/E. If you’re considering ALLE for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Seagate (STX)
Consensus Price Target: $467.67 (17.8% implied return)
One of two remaining major hard drive manufacturers after decades of industry consolidation, Seagate (NASDAQ: STX) manufactures hard disk drives and solid state drives that store data in data centers, cloud systems, and consumer devices.
Why Do We Like STX?
- Impressive 24.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Projected revenue growth of 28.2% for the next 12 months indicates demand will rise above its two-year trend
- Operating margin expansion of 8 percentage points over the last five years shows the company optimized its expenses
Seagate’s stock price of $396.98 implies a valuation ratio of 25.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.