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 poised to prove Wall Street wrong and two facing legitimate challenges.
Two Stocks to Sell:
Greenbrier (GBX)
Consensus Price Target: $49.67 (-14% implied return)
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Why Does GBX Fall Short?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 14%
- Negative free cash flow raises questions about the return timeline for its investments
Greenbrier’s stock price of $57.73 implies a valuation ratio of 14.8x forward P/E. Dive into our free research report to see why there are better opportunities than GBX.
D.R. Horton (DHI)
Consensus Price Target: $160.50 (-3.8% implied return)
One of the largest homebuilding companies in the U.S., D.R. Horton (NYSE:DHI) builds a variety of new construction homes across multiple markets.
Why Should You Sell DHI?
- Backlog has dropped by 13.7% on average over the past two years, suggesting it’s losing orders as competition picks up
- Earnings per share have contracted by 11% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $166.82 per share, D.R. Horton trades at 15.6x forward P/E. Read our free research report to see why you should think twice about including DHI in your portfolio.
One Stock to Buy:
Motorola Solutions (MSI)
Consensus Price Target: $502 (11.3% implied return)
Born from the company that invented the first portable handheld police radio in 1940, Motorola Solutions (NYSE:MSI) provides mission-critical communications, video security, and command center software solutions for public safety agencies and enterprise customers.
Why Will MSI Outperform?
- Annual revenue growth of 9.5% over the last five years was superb and indicates its market share increased during this cycle
- Strong free cash flow margin of 19.4% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Motorola Solutions is trading at $451.08 per share, or 27.3x 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.