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. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Crocs (CROX)
Consensus Price Target: $89.08 (2.7% implied return)
Founded in 2002, Crocs (NASDAQ: CROX) sells casual footwear and is known for its iconic clog shoe.
Why Do We Steer Clear of CROX?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Free cash flow margin is on track to jump by 1.9 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $86.75 per share, Crocs trades at 7.4x forward P/E. Read our free research report to see why you should think twice about including CROX in your portfolio.
Bristol-Myers Squibb (BMY)
Consensus Price Target: $53.55 (4.3% implied return)
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Why Is BMY Not Exciting?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.8% for the last two years
- Projected sales decline of 6.3% for the next 12 months points to a tough demand environment ahead
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Bristol-Myers Squibb is trading at $51.36 per share, or 8.1x forward P/E. Check out our free in-depth research report to learn more about why BMY doesn’t pass our bar.
Bread Financial (BFH)
Consensus Price Target: $70.50 (-4.5% implied return)
Formerly known as Alliance Data Systems until its 2022 rebranding, Bread Financial (NYSE: BFH) provides credit cards, installment loans, and savings products to consumers while powering branded payment solutions for retailers and merchants.
Why Are We Out on BFH?
- Sales tumbled by 6.1% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share have contracted by 3% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
Bread Financial’s stock price of $73.83 implies a valuation ratio of 8.4x forward P/E. If you’re considering BFH for your portfolio, see our FREE research report to learn more.
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 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% 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
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