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. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the skepticism is well-placed.

Two Stocks to Sell:

Macy's (M)

Consensus Price Target: $23.14 (1.8% implied return)

With a storied history that began with its 1858 founding, Macy’s (NYSE: M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Are We Bearish on M?

1. Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
2. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
3. Earnings per share have dipped by 17.8% annually over the past three years, which is concerning because stock prices follow EPS over the long term

Macy's is trading at $22.72 per share, or 10.2x forward P/E. If you’re considering M for your portfolio, see our FREE research report to learn more.

Dine Brands (DIN)

Consensus Price Target: $36 (1.6% implied return)

Operating a franchise model, Dine Brands (NYSE: DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.

Why Are We Out on DIN?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Free cash flow margin dropped by 10.2 percentage points over the last year, implying the company became more capital intensive as competition picked up
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $35.45 per share, Dine Brands trades at 8.1x forward P/E. Check out our free in-depth research report to learn more about why DIN doesn’t pass our bar.

One Stock to Watch:

Apple (AAPL)

Consensus Price Target: $324.45 (4.9% implied return)

Creator of the iPhone and App Store, Apple (NASDAQ: AAPL) is a legendary developer of consumer electronics and software.

Why Does AAPL Catch Our Eye?

1. Apple’s revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently.
2. Still, Apple’s devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk.
3. The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.

Apple’s stock price of $309.32 implies a valuation ratio of 33.9x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.