Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like 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 where you should be greedy instead of fearful and two where the outlook is warranted.

Two Stocks to Sell:

Timken (TKR)

Consensus Price Target: $89.39 (-1.3% implied return)

Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken (NYSE: TKR) is a provider of industrial parts used across various sectors.

Why Do We Pass on TKR?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Estimated sales growth of 2.7% for the next 12 months is soft and implies weaker demand
3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

Timken’s stock price of $90.62 implies a valuation ratio of 15.3x forward P/E. Check out our free in-depth research report to learn more about why TKR doesn’t pass our bar.

Cathay General Bancorp (CATY)

Consensus Price Target: $54.20 (6.6% implied return)

Founded in 1962 with its first branch in Los Angeles' Chinatown, Cathay General Bancorp (NASDAQ: CATY) operates Cathay Bank, providing commercial banking services to businesses and individuals with a strong presence in Asian-American communities.

Why Are We Cautious About CATY?

1. Sales tumbled by 1.7% annually over the last two years, showing market trends are working against its favor during this cycle
2. Muted 5.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
3. Sales were less profitable over the last two years as its earnings per share fell by 7.5% annually, worse than its revenue declines

Cathay General Bancorp is trading at $50.84 per share, or 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than CATY.

One Stock to Buy:

FTAI Aviation (FTAI)

Consensus Price Target: $247.40 (3.1% implied return)

With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.

Why Is FTAI a Top Pick?

1. Annual revenue growth of 43.9% over the past two years was outstanding, reflecting market share gains this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 82.4% annually, topping its revenue gains
3. Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency

At $240.03 per share, FTAI Aviation trades at 38.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 9 Market-Beating Stocks. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.