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.

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 where the skepticism is well-placed and some better opportunities to consider.

Belden (BDC)

Consensus Price Target: $132.83 (8.3% implied return)

With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE: BDC) designs, manufactures, and sells electronic components to various industries.

Why Does BDC Fall Short?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.7% annually over the last two years
2. Anticipated sales growth of 5.9% for the next year implies demand will be shaky
3. Flat earnings per share over the last two years underperformed the sector average

Belden is trading at $122.60 per share, or 16.9x forward P/E. If you’re considering BDC for your portfolio, see our FREE research report to learn more.

Ball (BALL)

Consensus Price Target: $62.74 (7.6% implied return)

Started with a $200 loan in 1880, Ball (NYSE: BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.

Why Are We Out on BALL?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.6% for the last five years
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $58.31 per share, Ball trades at 16.1x forward P/E. To fully understand why you should be careful with BALL, check out our full research report (it’s free).

OPENLANE (KAR)

Consensus Price Target: $24.33 (-2.5% implied return)

Facilitating the sale of approximately 1.3 million used vehicles in 2023, OPENLANE (NYSE: KAR) operates digital marketplaces that connect sellers and buyers of used vehicles across North America and Europe, facilitating wholesale transactions.

Why Do We Pass on KAR?

1. Sales tumbled by 7.9% annually over the last five years, showing market trends are working against its favor during this cycle
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 11.7 percentage points
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

OPENLANE’s stock price of $24.95 implies a valuation ratio of 24.8x forward P/E. Dive into our free research report to see why there are better opportunities than KAR.

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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

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