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. 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:

Arrow Electronics (ARW)

Consensus Price Target: $137.50 (-3.9% implied return)

Founded as a single retail store, Arrow Electronics (NYSE: ARW) provides electronic components and enterprise computing solutions to businesses globally.

Why Should You Dump ARW?

1. Annual sales declines of 3.5% for the past two years show its products and services struggled to connect with the market during this cycle
2. Sales were less profitable over the last two years as its earnings per share fell by 19.7% annually, worse than its revenue declines
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $143.15 per share, Arrow Electronics trades at 10.9x forward P/E. Check out our free in-depth research report to learn more about why ARW doesn’t pass our bar.

Select Medical (SEM)

Consensus Price Target: $16.63 (2.3% implied return)

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE: SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Why Are We Cautious About SEM?

1. Declining admissions over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 9.3% annually
3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Select Medical’s stock price of $16.25 implies a valuation ratio of 13.1x forward P/E. If you’re considering SEM for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

ESCO (ESE)

Consensus Price Target: $285 (0.7% implied return)

A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE: ESE) is a provider of engineered components for the aerospace, defense, and utility sectors.

Why Is ESE a Good Business?

1. Sales pipeline is in good shape as its backlog averaged 41.7% growth over the past two years
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.3% over the last two years outstripped its revenue performance
3. Free cash flow margin increased by 10.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders

ESCO is trading at $282.90 per share, or 33.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

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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 Kadant (+351% five-year return). Find your next big winner with StockStory today.