2 Unpopular Stocks That Deserve a Second Chance and 1 We Find Risky

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 where you should be greedy instead of fearful and one where the outlook is warranted.

One Stock to Sell:

Allison Transmission (ALSN)

Consensus Price Target: $104.80 (5.8% implied return)

Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.

Why Are We Hesitant About ALSN?

1. 1.5% annual revenue growth over the last two years was slower than its industrials peers
2. Estimated sales decline of 4.7% for the next 12 months implies a challenging demand environment
3. Earnings per share lagged its peers over the last two years as they only grew by 6.3% annually

At $99.02 per share, Allison Transmission trades at 14.3x forward P/E. Check out our free in-depth research report to learn more about why ALSN doesn’t pass our bar.

Two Stocks to Watch:

Elevance Health (ELV)

Consensus Price Target: $391.21 (7.4% implied return)

Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE:ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.

Why Are We Positive On ELV?

1. 10.7% annual revenue growth over the last five years was better than the sector average, highlighting the value of its products and services
2. Dominant market position is represented by its $193.3 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Elevance Health is trading at $364.37 per share, or 13.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

StepStone Group (STEP)

Consensus Price Target: $76.57 (11.5% implied return)

Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ:STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.

Why Is STEP a Top Pick?

1. Annual revenue growth of 32.5% over the past two years was outstanding, reflecting market share gains this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 41.4% outpaced its revenue gains

StepStone Group’s stock price of $68.67 implies a valuation ratio of 31.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.