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.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in – to help you find attractive investment candidates backed by unbiased research. That said, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.

Two Stocks to Sell:

Horace Mann Educators (HMN)

Consensus Price Target: $56.50 (9.5% implied return)

Founded in 1945 and named after the 19th-century education reformer known as the “father of American public education,” Horace Mann Educators (NYSE:HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.

Why Is HMN Risky?

  1. Net premiums earned expanded by 6.4% annually over the last five years, falling below our expectations for the insurance sector
  2. Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 3.3% annually over the last five years
  3. Underwhelming 6.8% return on equity reflects management’s difficulties in finding profitable growth opportunities

At $51.61 per share, Horace Mann Educators trades at 1.3x forward P/B. If you’re considering HMN for your portfolio, see our FREE research report to learn more.

Cathay General Bancorp (CATY)

Consensus Price Target: $65.80 (2.5% implied return)

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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. Muted 6.6% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
  2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 7.5% annually
  3. Projected tangible book value per share growth of 10% for the next 12 months suggests sluggish capital generation

Cathay General Bancorp’s stock price of $64.22 implies a valuation ratio of 1.4x forward P/B. Read our free research report to see why you should think twice about including CATY in your portfolio.

One Stock to Watch:

DHT Holdings (DHT)

Consensus Price Target: $20.52 (6.9% implied return)

With each vessel capable of carrying roughly 2 million barrels of oil—enough to fill about 125 Olympic swimming pools—DHT Holdings (NYSE:DHT) operates very large crude carriers that transport crude oil across international routes for energy companies and traders.

Why Could DHT Be a Winner?

  1. Annual revenue growth of 6.4% over the last ten years was superb and indicates its market share increased during this cycle
  2. EBITDA margin expanded by 34.6 percentage points over the last five years as it scaled and became more efficient
  3. Robust free cash flow margin of 28.8% gives it many options for capital deployment

DHT Holdings is trading at $19.20 per share, or 6.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

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Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.


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