1 Unpopular Stock That Deserves Some Love and 2 Facing Headwinds

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 is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.

Two Stocks to Sell:

Genuine Parts (GPC)

Consensus Price Target: $140.38 (4% implied return)

Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.

Why Does GPC Give Us Pause?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.1% for the last three years
2. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
3. Subpar operating margin of 4.3% constrains its ability to invest in process improvements or effectively respond to new competitive threats

At $135.04 per share, Genuine Parts trades at 16.9x forward P/E. Read our free research report to see why you should think twice about including GPC in your portfolio.

Penske Automotive Group (PAG)

Consensus Price Target: $211.25 (-3.9% implied return)

With a diverse global network spanning the US, UK, Canada, Germany, Italy, Japan, and Australia, Penske Automotive Group (NYSE:PAG) operates automotive and commercial truck dealerships across the globe, selling new and used vehicles while providing service, parts, and financing options.

Why Are We Bearish on PAG?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Widely-available products (and therefore stiff competition) result in an inferior gross margin of 13% that must be offset through higher volumes
3. Earnings per share fell by 10.1% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable

Penske Automotive Group’s stock price of $219.88 implies a valuation ratio of 15.8x forward P/E. Dive into our free research report to see why there are better opportunities than PAG.

One Stock to Buy:

GitLab (GTLB)

Consensus Price Target: $35.22 (-17.4% implied return)

With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ:GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.

Why Is GTLB a Top Pick?

1. Annual revenue growth of 27.1% over the last two years was superb and indicates its market share is rising
2. ARR growth averaged 24.9% over the last year, showing customers are willing to take multi-year bets on its software
3. Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 86.8%

GitLab is trading at $42.65 per share, or 6.4x forward price-to-sales. Is now the right time to buy? Find out in our full 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.