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 poised to prove Wall Street wrong and two facing legitimate challenges.
Two Stocks to Sell:
Norfolk Southern (NSC)
Consensus Price Target: $311.32 (7.5% implied return)
Starting with a single route from Virginia to North Carolina, Norfolk Southern (NYSE: NSC) is a freight transportation company operating a major railroad network across the eastern United States.
Why Do We Steer Clear of NSC?
- Disappointing unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Flat earnings per share over the last two years underperformed the sector average
- Free cash flow margin shrank by 9.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $289.66 per share, Norfolk Southern trades at 22.7x forward P/E. Read our free research report to see why you should think twice about including NSC in your portfolio.
Western Union (WU)
Consensus Price Target: $9.63 (1.4% implied return)
With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE: WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.
Why Do We Think WU Will Underperform?
- Annual sales declines of 2.9% for the past five years show its products and services struggled to connect with the market during this cycle
- Earnings per share have dipped by 1.1% annually over the past five years, which is concerning because stock prices follow EPS over the long term
Western Union is trading at $9.49 per share, or 5.2x forward P/E. To fully understand why you should be careful with WU, check out our full research report (it’s free for active Edge members).
One Stock to Buy:
W. R. Berkley (WRB)
Consensus Price Target: $73.67 (9.1% implied return)
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Why Will WRB Beat the Market?
- Market penetration was impressive this cycle as its net premiums earned expanded by 12.4% annually over the last five years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 35.5% exceeded its revenue gains over the last five years
- Notable projected book value per share growth of 20.3% for the next 12 months hints at strong capital generation
W. R. Berkley’s stock price of $67.53 implies a valuation ratio of 2.5x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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-small-cap company Exlservice (+354% 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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