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 three stocks facing legitimate challenges and some alternatives worth exploring instead.

Genuine Parts (GPC)

Consensus Price Target: $146.11 (7% 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 Fall Short?

1. Annual sales growth of 4% over the last three years lagged behind its consumer retail peers as its large revenue base made it difficult to generate incremental demand
2. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
3. 3.3 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

Genuine Parts’s stock price of $136.50 implies a valuation ratio of 16x forward P/E. To fully understand why you should be careful with GPC, check out our full research report (it’s free).

Advanced Energy (AEIS)

Consensus Price Target: $258 (-4.1% implied return)

Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ: AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.

Why Is AEIS Risky?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Efficiency has decreased over the last five years as its operating margin fell by 3.1 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Advanced Energy is trading at $269.12 per share, or 34.5x forward P/E. Dive into our free research report to see why there are better opportunities than AEIS.

Insperity (NSP)

Consensus Price Target: $42.75 (-9.1% implied return)

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE: NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Why Should You Dump NSP?

1. Annual revenue growth of 2.8% over the last two years was below our standards for the business services sector
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 18.7% annually
3. 4.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $47.05 per share, Insperity trades at 25.5x forward P/E. If you’re considering NSP for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Check out the high-quality names we’ve flagged in 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.