"Where the action is, where the growth is, where the margin is, IBM unfortunately is not," Egan said. "They have some difficulty positioning themselves properly and they need some attention."
Egan-Jones is a Nationally Recognized Statistical Ratings Organization (NRSRO) and is recognized by the National Association of Insurance Commissioners (NAIC) as a credit-rating provider.
According to Egan, IBM's "wealth destruction" has been in the area of $28 billion due to its lack of revenue growth.
Shares of IBM are up almost 4% so far this year, and yet have fallen about 9% during the past 12 months, compared with an 8% gain for the Standard & Poor's 500 Index.
Harley-Davidson (HOG) may also be at the end of the road in Egan's view because of the motorcycle maker's "tepid growth, peer-underperformance and miserable total shareholder return," adding that "it's a fantastic brand but they are losing their core customer base, and that's the baby boomers."
Shares of Harley-Davidson are down 17% year-to-date and about 21% during the past 12 months.
Egan said CEO Matt Levatich's compensation of $9 million is a good indication that the company's cost structure is bloated.
Finally, Egan said the strategic positioning of casino powerhouse Wynn Resorts (WYNN) needs to be upgraded lest the company see its rating slashed.