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 are three stocks facing legitimate challenges and some alternatives worth exploring instead.
Ford (F)
Consensus Price Target: $12.84 (-7% implied return)
Established to make automobiles accessible to a broader segment of the population, Ford (NYSE:F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.
Why Do We Avoid F?
- Flat vehicles sold over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 22.5% annually
- High net-debt-to-EBITDA ratio of 9× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Ford is trading at $13.81 per share, or 12.4x forward P/E. Dive into our free research report to see why there are better opportunities than F.
Expeditors (EXPD)
Consensus Price Target: $127.67 (-15.8% implied return)
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Why Are We Wary of EXPD?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.3% over the last two years was below our standards for the industrials sector
- Gross margin of 13.4% reflects its high production costs
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $151.58 per share, Expeditors trades at 25.9x forward P/E. If you’re considering EXPD for your portfolio, see our FREE research report to learn more.
OceanFirst Financial (OCFC)
Consensus Price Target: $21.50 (6.3% implied return)
Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial (NASDAQ:OCFC) operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.
Why Do We Steer Clear of OCFC?
- Sales tumbled by 3.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Muted 3.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Incremental sales over the last five years were less profitable as its 1.2% annual earnings per share growth lagged its revenue gains
OceanFirst Financial’s stock price of $20.22 implies a valuation ratio of 0.7x forward P/B. Dive into our free research report to see why there are better opportunities than OCFC.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.