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1 Unpopular Stock That Deserves a Second Chance and 2 We Find Risky

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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?

  1. Annual sales declines of 6% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Estimated sales decline of 5.2% for the next 12 months implies an even more challenging demand environment
  3. 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?

  1. 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
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.2%
  3. 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?

  1. 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
  2. Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 30.1% annually
  3. 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.

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