Output referenced entity in correct language
Do not use the raw field value, use the render array of the field instead:

{{ content.field_stories }}


This will automatically use the correct language.

NOT RECOMMENDED:
If you have to go the custom, raw value route you can do something like

{% for story in node.field_stories %}
  {% if story.entity.hasTranslation('iso2_langcode') %}
    {{ story.entity.getTranslation('iso2_langcode').label }}
  {% else %}
    {# fallback default lang #}
    {{ story.entity.label }}
  {% endif %}
{% endfor %}