Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like 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. Keeping that in mind, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.
Intel (INTC)
Consensus Price Target: $47.17 (1.8% implied return)
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ:INTC) is a leading manufacturer of computer processors and graphics chips.
Why Should You Dump INTC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.2% annually over the last five years
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 40.1% annually, worse than its revenue
- Free cash flow margin shrank by 18.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $46.32 per share, Intel trades at 107x forward P/E. Dive into our free research report to see why there are better opportunities than INTC.
Warner Bros. Discovery (WBD)
Consensus Price Target: $28.70 (2.2% implied return)
Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ:WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.
Why Are We Out on WBD?
- Annual revenue declines of 5.1% over the last two years indicate problems with its market positioning
- Free cash flow margin is projected to show no improvement next year
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Warner Bros. Discovery is trading at $28.09 per share, or 11.5x forward EV-to-EBITDA. If you’re considering WBD for your portfolio, see our FREE research report to learn more.
Saia (SAIA)
Consensus Price Target: $394.45 (4% implied return)
Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions.
Why Do We Think Twice About SAIA?
- Disappointing tons shipped over the past two years indicate demand is soft and that the company may need to revise its strategy
- Low free cash flow margin of -0.4% declined over the last five years as its investments ramped, giving it little breathing room
- Diminishing returns on capital suggest its earlier profit pools are drying up
Saia’s stock price of $379.26 implies a valuation ratio of 36.6x forward P/E. Check out our free in-depth research report to learn more about why SAIA doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.