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.

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:

Dine Brands (DIN)

Consensus Price Target: $25.75 (-21.9% implied return)

Operating a franchise model, Dine Brands (NYSE: DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.

Why Are We Out on DIN?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
2. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 6.7 percentage points
3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $32.98 per share, Dine Brands trades at 6.9x forward P/E. Check out our free in-depth research report to learn more about why DIN doesn’t pass our bar.

Two Stocks to Buy:

Abercrombie and Fitch (ANF)

Consensus Price Target: $114 (-7.9% implied return)

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Why Will ANF Beat the Market?

1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 11.9% over the past two years
2. Differentiated product assortment is reflected in its best-in-class gross margin of 63.3%
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 189% exceeded its revenue gains over the last three years

Abercrombie and Fitch is trading at $123.77 per share, or 12.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Eli Lilly (LLY)

Consensus Price Target: $1,098 (1.8% implied return)

Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.

Why Will LLY Outperform?

1. Market share has increased this cycle as its 36.1% annual revenue growth over the last two years was exceptional
2. Adjusted operating margin improvement of 20.8 percentage points over the last two years demonstrates its ability to scale efficiently
3. Share repurchases over the last five years enabled its annual earnings per share growth of 29.5% to outpace its revenue gains

Eli Lilly’s stock price of $1,079 implies a valuation ratio of 34.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.