Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like 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:

WESCO (WCC)

Consensus Price Target: $230.27 (2% implied return)

Based in Pittsburgh, WESCO (NYSE: WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.

Why Does WCC Worry Us?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Earnings per share have dipped by 12.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Low free cash flow margin of 2% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

At $225.76 per share, WESCO trades at 15x forward P/E. If you’re considering WCC for your portfolio, see our FREE research report to learn more.

Aflac (AFL)

Consensus Price Target: $108.08 (0.9% implied return)

Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac (NYSE: AFL) provides supplemental health and life insurance policies that pay cash benefits directly to policyholders for expenses not covered by their primary insurance.

Why Do We Steer Clear of AFL?

1. Insurance offerings face significant market challenges this cycle as net premiums earned contracted by 7.8% annually over the last four years
2. Pre-tax profits fell over the last two years as its sales dropped and it struggled to adjust its fixed costs
3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 13% annually

Aflac is trading at $107.12 per share, or 2.2x forward P/B. Dive into our free research report to see why there are better opportunities than AFL.

One Stock to Buy:

Lam Research (LRCX)

Consensus Price Target: $108.93 (7.2% implied return)

Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ: LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.

Why Will LRCX Beat the Market?

1. Annual revenue growth of 12.9% over the last five years was superb and indicates its market share increased during this cycle
2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 30.5%, and its profits increased over the last five years as it scaled
3. Industry-leading 64.1% return on capital demonstrates management’s skill in finding high-return investments

Lam Research’s stock price of $101.59 implies a valuation ratio of 25x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Kadant (+351% 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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