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1 Unpopular Stock That Should Get More Attention and 2 We Brush Off
Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.
Two Stocks to Sell:
Rush Enterprises (RUSHA)
Consensus Price Target: $57.50 (7.1% implied return)
Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.
Why Are We Out on RUSHA?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Projected sales decline of 3.6% for the next 12 months points to an even tougher demand environment ahead
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 12% annually
At $53.67 per share, Rush Enterprises trades at 16.8x forward P/E. To fully understand why you should be careful with RUSHA, check out our full research report (it’s free for active Edge members).
Annaly Capital Management (NLY)
Consensus Price Target: $22.28 (-0.5% implied return)
Operating as a real estate investment trust since 1996 with a focus on generating income from interest rate spreads, Annaly Capital Management (NYSE:NLY) is a diversified capital manager that invests in agency mortgage-backed securities, residential mortgage loans, and mortgage servicing rights.
Why Should You Sell NLY?
- Net interest income trends were unexciting over the last five years as its 4.7% annual growth was below the typical banking firm
- Net interest margin of 0.5% reflects its high servicing and capital costs
- Earnings per share have contracted by 7.3% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
Annaly Capital Management is trading at $22.38 per share, or 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than NLY.
One Stock to Watch:
Cincinnati Financial (CINF)
Consensus Price Target: $173.83 (6.4% implied return)
Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ:CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.
Why Does CINF Catch Our Eye?
- Net premiums earned surged by 12.1% annually over the past two years, reflecting strong market share gains this cycle
- Share repurchases over the last five years enabled its annual earnings per share growth of 21.6% to outpace its revenue gains
- Balance sheet strength has increased this cycle as its 20.8% annual book value per share growth over the last two years was exceptional
Cincinnati Financial’s stock price of $163.43 implies a valuation ratio of 1.6x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.