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 skepticism is well-placed.

One Stock to Sell:

Marcus & Millichap (MMI)

Consensus Price Target: $30 (-2.2% implied return)

Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Why Do We Steer Clear of MMI?

1. Annual sales declines of 3.2% for the past five years show its products and services struggled to connect with the market
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Marcus & Millichap’s stock price of $30.69 implies a valuation ratio of 306.5x forward P/E. To fully understand why you should be careful with MMI, check out our full research report (it’s free).

Two Stocks to Watch:

Rollins (ROL)

Consensus Price Target: $58.73 (1.7% implied return)

Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.

Why Is ROL a Good Business?

1. Annual revenue growth of 11.5% over the last two years was superb and indicates its market share increased during this cycle
2. Superior product capabilities and pricing power result in a best-in-class gross margin of 52.2%
3. Robust free cash flow margin of 16.4% gives it many options for capital deployment

At $57.74 per share, Rollins trades at 49.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Verisk (VRSK)

Consensus Price Target: $306.60 (10.5% implied return)

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Why Is VRSK Interesting?

1. Average constant currency growth of 7.4% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
2. VRSK is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
3. Returns on capital are growing as management capitalizes on its market opportunities

Verisk is trading at $277.43 per share, or 36.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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