
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 Wall Street’s pessimism is creating a buying opportunity and two facing legitimate challenges.
Two Stocks to Sell:
Biogen (BIIB)
Consensus Price Target: $205.52 (5.1% implied return)
Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ: BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.
Why Do We Think BIIB Will Underperform?
- Annual sales declines of 6% for the past five years show its products and services struggled to connect with the market during this cycle
- Estimated sales decline of 5.2% for the next 12 months implies an even more challenging demand environment
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 14.2% annually, worse than its revenue
At $195.50 per share, Biogen trades at 12.2x forward P/E. To fully understand why you should be careful with BIIB, check out our full research report (it’s free).
ASGN (ASGN)
Consensus Price Target: $54.50 (30.2% implied return)
Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE: ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.
Why Do We Avoid ASGN?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.4% annually over the last two years
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.2%
- Earnings per share have contracted by 1.2% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
ASGN is trading at $41.86 per share, or 8.4x forward P/E. Check out our free in-depth research report to learn more about why ASGN doesn’t pass our bar.
One Stock to Buy:
Alignment Healthcare (ALHC)
Consensus Price Target: $25.17 (25.4% implied return)
Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.
Why Is ALHC a Good Business?
- Customer growth averaged 25.9% over the past two years, showing its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales
- Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 30.1% annually
- Free cash flow margin is now positive, showing the company has crossed a key inflection point
Alignment Healthcare’s stock price of $20.07 implies a valuation ratio of 58.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
