1 Unpopular Stock That Deserves a Second Chance and 2 We Ignore

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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?

  1. Sales tumbled by 6.7% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 10.1% annually
  3. 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?

  1. 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
  2. Anticipated sales growth of 7.3% for the next year implies demand will be shaky
  3. 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?

  1. Impressive 24.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Projected revenue growth of 28.2% for the next 12 months indicates demand will rise above its two-year trend
  3. 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.

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