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 poised to prove Wall Street wrong and two facing legitimate challenges.

Two Stocks to Sell:

REV Group (REVG)

Consensus Price Target: $34 (4% implied return)

Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.

Why Are We Hesitant About REVG?

1. Sales stagnated over the last five years and signal the need for new growth strategies
2. Gross margin of 11.7% reflects its high production costs
3. Responsiveness to unforeseen market trends is restricted due to its substandard operating profitability

REV Group is trading at $32.70 per share, or 13x forward price-to-earnings. Check out our free in-depth research report to learn more about why REVG doesn’t pass our bar.

AT&T (T)

Consensus Price Target: $29.26 (6.2% implied return)

Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.

Why Do We Pass on T?

1. Sales tumbled by 7.3% annually over the last five years, showing consumer trends are working against its favor
2. Sales were less profitable over the last five years as its earnings per share fell by 10.9% annually, worse than its revenue declines
3. Low returns on capital reflect management’s struggle to allocate funds effectively

AT&T’s stock price of $27.56 implies a valuation ratio of 13.3x forward price-to-earnings. If you’re considering T for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Waste Connections (WCN)

Consensus Price Target: $207.94 (5.2% implied return)

Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE: WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.

Why Do We Watch WCN?

1. Annual revenue growth of 10.5% over the last five years was superb and indicates its market share increased during this cycle
2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. WCN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $197.63 per share, Waste Connections trades at 36.5x forward price-to-earnings. 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 surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.