Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.
Applied Materials (AMAT)
Consensus Price Target: $314.73 (-1.6% implied return)
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Why Are We Cautious About AMAT?
- Projected sales growth of 2.6% for the next 12 months suggests sluggish demand
Applied Materials’s stock price of $319.73 implies a valuation ratio of 33.3x forward P/E. If you’re considering AMAT for your portfolio, see our FREE research report to learn more.
Hilton (HLT)
Consensus Price Target: $296.44 (-0.2% implied return)
Founded in 1919, Hilton Worldwide (NYSE: HLT) is a global hospitality company with a portfolio of hotel brands.
Why Do We Pass on HLT?
- Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels
- Projected 3.3 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Underwhelming 24.1% return on capital reflects management’s difficulties in finding profitable growth opportunities
Hilton is trading at $297.12 per share, or 33.8x forward P/E. Dive into our free research report to see why there are better opportunities than HLT.
ArcBest (ARCB)
Consensus Price Target: $90.75 (3.3% implied return)
Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ: ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.
Why Do We Steer Clear of ARCB?
- Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Eroding returns on capital suggest its historical profit centers are aging
At $87.88 per share, ArcBest trades at 24x forward P/E. If you’re considering ARCB for your portfolio, see our FREE research report to learn more.
Stocks We Like More
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
