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. Keeping that in mind, here are two stocks poised to prove Wall Street wrong and one facing legitimate challenges.

One Stock to Sell:

Tri Pointe Homes (TPH)

Consensus Price Target: $38.20 (7.6% implied return)

Established in 2009 in California, Tri Pointe Homes (NYSE: TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.

Why Should You Sell TPH?

1. Demand cratered as it couldn’t win new orders over the past two years, leading to an average 11.2% decline in its backlog
2. Projected sales decline of 17.8% over the next 12 months indicates demand will continue deteriorating
3. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 7.5% annually, worse than its revenue

At $35.50 per share, Tri Pointe Homes trades at 16.3x forward P/E. Dive into our free research report to see why there are better opportunities than TPH.

Two Stocks to Watch:

Merck (MRK)

Consensus Price Target: $113.33 (2.2% implied return)

With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE: MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.

Why Do We Love MRK?

1. Dominant market position is represented by its $64.23 billion in revenue, which creates significant barriers to entry in this highly regulated industry
2. Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business

Merck’s stock price of $110.91 implies a valuation ratio of 15.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Chubb (CB)

Consensus Price Target: $318.48 (5% implied return)

Dating back to when a Civil War veteran created a frost-proof water meter, Chubb Limited (NYSE: CB) provides commercial and personal property and casualty insurance, reinsurance, and life insurance products to a diverse client base across 54 countries.

Why Does CB Stand Out?

1. Steady 9.1% annualized growth in net premiums earned over the last two years shows its insurance offerings are gaining traction
2. Combined ratio improvement of 8.3 percentage points over the last five years demonstrates its ability to scale effectively
3. Share buybacks catapulted its annual earnings per share growth to 29.5%, which outperformed its revenue gains over the last five years

Chubb is trading at $303.27 per share, or 1.6x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.