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 facing legitimate challenges.

Two Stocks to Sell:

Ralph Lauren (RL)

Consensus Price Target: $308.83 (11.9% implied return)

Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.

Why Do We Think Twice About RL?

1. Sales trends were unexciting over the last five years as its 2.8% annual growth was below the typical consumer discretionary company

2. Constant currency revenue growth has disappointed over the past two years and shows demand was soft

3. Estimated sales growth of 4.6% for the next 12 months is soft and implies weaker demand

Ralph Lauren is trading at $276 per share, or 20.5x forward P/E. If you’re considering RL for your portfolio, see our FREE research report to learn more.

MSA Safety (MSA)

Consensus Price Target: $177.25 (9.5% implied return)

Founded in 1914 as Mine Safety Appliances to protect coal miners from dangerous gases, MSA Safety (NYSE:MSA) designs and manufactures advanced safety products that protect workers and facilities across industries including fire service, energy, construction, and manufacturing.

Why Does MSA Worry Us?

1. Modest revenue base of $1.82 billion gives it less fixed cost leverage and fewer distribution channels than larger companies

2. Estimated sales growth of 3.5% for the next 12 months implies demand will slow from its two-year trend

3. Free cash flow margin has stayed in place over the last five years

At $161.84 per share, MSA Safety trades at 19.5x forward P/E. Read our free research report to see why you should think twice about including MSA in your portfolio, it’s free.

One Stock to Watch:

Ingersoll Rand (IR)

Consensus Price Target: $89.23 (11.6% implied return)

Started with the invention of the steam drill, Ingersoll Rand (NYSE:IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.

Why Do We Like IR?

1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

2. Additional sales over the last five years increased its profitability as the 17.2% annual growth in its earnings per share outpaced its revenue

3. Robust free cash flow margin of 15.7% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy