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 poised to prove Wall Street wrong and two where the outlook is warranted.
Two Stocks to Sell:
Whirlpool (WHR)
Consensus Price Target: $92.13 (33.4% implied return)
Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.
Why Should You Sell WHR?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.4% annually over the last five years
- 7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Whirlpool is trading at $69.08 per share, or 11x forward P/E. Check out our free in-depth research report to learn more about why WHR doesn’t pass our bar.
Jackson Financial (JXN)
Consensus Price Target: $125.33 (7.3% implied return)
Spun off from British insurer Prudential plc in 2021 after more than 60 years as its U.S. subsidiary, Jackson Financial (NYSE: JXN) offers annuity products and retirement solutions that help Americans grow and protect their retirement savings and income.
Why Is JXN Not Exciting?
- Sluggish 1.9% annualized growth in net premiums earned over the last two years indicates the firm trailed its insurance peers
- Expenses have increased as a percentage of revenue over the last two years as its pre-tax profit margin fell by 32.8 percentage points
- Earnings per share have contracted by 2.3% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
Jackson Financial’s stock price of $116.84 implies a valuation ratio of 0.7x forward P/B. To fully understand why you should be careful with JXN, check out our full research report (it’s free).
One Stock to Watch:
AAR (AIR)
Consensus Price Target: $114.50 (-3.4% implied return)
The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE: AIR) is a provider of aircraft maintenance services
Why Does AIR Stand Out?
- Market share has increased this cycle as its 17% annual revenue growth over the last two years was exceptional
- Market share will likely rise over the next 12 months as its expected revenue growth of 15.5% is robust
- Earnings per share have massively outperformed its peers over the last two years, increasing by 17.9% annually
At $118.47 per share, AAR trades at 23.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
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 5 Strong Momentum Stocks for this week. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
