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:

Littelfuse (LFUS)

Consensus Price Target: $255.42 (10.2% implied return)

The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ: LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.

Why Do We Think LFUS Will Underperform?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6% annually over the last two years
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Littelfuse’s stock price of $231.77 implies a valuation ratio of 23.7x forward P/E. To fully understand why you should be careful with LFUS, check out our full research report (it’s free).

Hub Group (HUBG)

Consensus Price Target: $38.90 (11.1% implied return)

Started with $10,000, Hub Group (NASDAQ: HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.

Why Should You Sell HUBG?

1. Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 41.4% annually, worse than its revenue
3. Waning returns on capital imply its previous profit engines are losing steam

At $35.02 per share, Hub Group trades at 16x forward P/E. Check out our free in-depth research report to learn more about why HUBG doesn’t pass our bar.

One Stock to Watch:

Amgen (AMGN)

Consensus Price Target: $313.56 (5.9% implied return)

Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.

Why Do We Like AMGN?

1. Solid 14.1% annual revenue growth over the last two years indicates its offering’s solve complex business issues
2. Economies of scale give it more fixed cost leverage than its smaller competitors
3. Strong free cash flow margin of 31% enables it to reinvest or return capital consistently

Amgen is trading at $296.04 per share, or 14.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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

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