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.
YETI (YETI)
Consensus Price Target: $41.43 (-8.7% implied return)
Founded by two brothers from Texas, YETI (NYSE:YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
Why Do We Steer Clear of YETI?
- 12.7% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 13.5 percentage points over the next year
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $45.40 per share, YETI trades at 17.1x forward P/E. If you’re considering YETI for your portfolio, see our FREE research report to learn more.
Snap-on (SNA)
Consensus Price Target: $361 (2.9% 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 Is SNA Not Exciting?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Flat earnings per share over the last two years lagged its peers
- Eroding returns on capital suggest its historical profit centers are aging
Snap-on’s stock price of $350.99 implies a valuation ratio of 17.9x forward P/E. Check out our free in-depth research report to learn more about why SNA doesn’t pass our bar.
Hologic (HOLX)
Consensus Price Target: $76.50 (2.7% implied return)
As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ:HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.
Why Does HOLX Worry Us?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- 20.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Hologic is trading at $74.51 per share, or 16.4x forward P/E. Dive into our free research report to see why there are better opportunities than HOLX.
High-Quality Stocks for All Market Conditions
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 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 Comfort Systems (+782% 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.