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.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Bath and Body Works (BBWI)
Consensus Price Target: $25 (1.5% implied return)
Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Why Does BBWI Fall Short?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Sales are projected to tank by 5.1% over the next 12 months as its demand continues evaporating
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Bath and Body Works is trading at $24.63 per share, or 9.5x forward P/E. Check out our free in-depth research report to learn more about why BBWI doesn’t pass our bar.
Snap-on (SNA)
Consensus Price Target: $371.44 (-2.7% implied return)
Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.
Why Are We Hesitant About SNA?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Flat earnings per share over the last two years underperformed the sector average
- Eroding returns on capital suggest its historical profit centers are aging
At $381.78 per share, Snap-on trades at 19.3x forward P/E. Read our free research report to see why you should think twice about including SNA in your portfolio.
NVR (NVR)
Consensus Price Target: $8,081 (8.9% implied return)
Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.
Why Do We Steer Clear of NVR?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 17.5% declines over the past two years
- Earnings per share fell by 2.8% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Eroding returns on capital suggest its historical profit centers are aging
NVR’s stock price of $7,420 implies a valuation ratio of 18.9x forward P/E. Dive into our free research report to see why there are better opportunities than NVR.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.