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.
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.
BJ's (BJRI)
Consensus Price Target: $44.22 (-14.3% implied return)
Founded in 1978 in California, BJ’s Restaurants (NASDAQ: BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
Why Should You Sell BJRI?
- Muted 3.2% annual revenue growth over the last seven years shows its demand lagged behind its restaurant peers
- Estimated sales growth of 2.9% for the next 12 months is soft and implies weaker demand
- Lacking pricing power results in an inferior gross margin of 15.1% that must be offset by turning more tables
BJ’s stock price of $51.62 implies a valuation ratio of 22.2x forward P/E. Check out our free in-depth research report to learn more about why BJRI doesn’t pass our bar.
Expeditors (EXPD)
Consensus Price Target: $146.38 (-10.3% implied return)
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Why Are We Wary of EXPD?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- High input costs result in an inferior gross margin of 13.5% that must be offset through higher volumes
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Expeditors is trading at $163.27 per share, or 24.8x forward P/E. Read our free research report to see why you should think twice about including EXPD in your portfolio.
Fortrea (FTRE)
Consensus Price Target: $16.21 (-3.8% implied return)
Spun off from Labcorp in 2023 to focus exclusively on clinical research services, Fortrea (NASDAQ: FTRE) is a contract research organization that helps pharmaceutical, biotech, and medical device companies develop and bring their products to market through clinical trials and support services.
Why Do We Think FTRE Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.1% annually over the last four years
- Push for growth has led to negative returns on capital, signaling value destruction, and its decreasing returns suggest its historical profit centers are aging
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $16.85 per share, Fortrea trades at 19.9x forward P/E. If you’re considering FTRE for your portfolio, see our FREE research report to learn more.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
