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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. 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:
W.W. Grainger (GWW)
Consensus Price Target: $1,292 (-5.1% implied return)
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
Why Are We Wary of GWW?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.1% over the last two years was below our standards for the industrials sector
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 1.3% annually
At $1,361 per share, W.W. Grainger trades at 30x forward P/E. To fully understand why you should be careful with GWW, check out our full research report (it’s free).
Goodyear (GT)
Consensus Price Target: $7.46 (3.4% implied return)
With its iconic blimp floating above major sporting events since 1925, Goodyear (NASDAQ: GT) is one of the world's largest tire manufacturers, producing and selling tires for automobiles, trucks, aircraft, and other vehicles, along with related services.
Why Are We Bearish on GT?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.9% annually over the last two years
- Issuance of new shares over the last two years caused its earnings per share to fall by 56.8% annually, even worse than its revenue declines
- Cash burn makes us question whether it can achieve sustainable long-term growth
Goodyear’s stock price of $7.21 implies a valuation ratio of 5.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why GT doesn’t pass our bar.
One Stock to Watch:
Dynatrace (DT)
Consensus Price Target: $47.61 (7.2% implied return)
With its platform processing over 30 trillion pieces of IT performance data daily, Dynatrace (NYSE: DT) provides an AI-powered platform that helps organizations monitor, secure, and optimize their applications and IT infrastructure across cloud environments.
Why Are We Fans of DT?
- Average billings growth of 24% over the last year enhances its liquidity and shows there is steady demand for its products
- Prominent and differentiated software results in a top-tier gross margin of 81.7%
- Robust free cash flow margin of 26.2% gives it many options for capital deployment
Dynatrace is trading at $44.42 per share, or 5.6x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
