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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Amtech (ASYS)
Consensus Price Target: $12 (-3.8% implied return)
Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ: ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.
Why Is ASYS Not Exciting?
- Annual sales declines of 16.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Low free cash flow margin of 6.6% for the last two 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, and its shrinking returns suggest its past profit sources are losing steam
At $12.48 per share, Amtech trades at 30.5x forward P/E. Check out our free in-depth research report to learn more about why ASYS doesn’t pass our bar.
Rockwell Automation (ROK)
Consensus Price Target: $400.23 (2.1% implied return)
One of the first companies to address industrial automation, Rockwell Automation (NYSE: ROK) sells products that help customers extract more efficiency from their machinery.
Why Does ROK Give Us Pause?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Sales were less profitable over the last two years as its earnings per share fell by 7.2% annually, worse than its revenue declines
- Waning returns on capital imply its previous profit engines are losing steam
Rockwell Automation’s stock price of $391.97 implies a valuation ratio of 33.4x forward P/E. To fully understand why you should be careful with ROK, check out our full research report (it’s free for active Edge members).
One Stock to Buy:
Oscar Health (OSCR)
Consensus Price Target: $14.67 (-4.8% implied return)
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Are We Backing OSCR?
- Annual revenue growth of 39.7% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share have massively outperformed its peers over the last four years, increasing by 30.3% annually
- Free cash flow margin grew by 12.8 percentage points over the last five years, giving the company more chips to play with
Oscar Health is trading at $15.41 per share, or 0.3x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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.
