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. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
Appian (APPN)
Consensus Price Target: $34 (-12.4% implied return)
Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ: APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.
Why Are We Hesitant About APPN?
- Estimated sales growth of 12.2% for the next 12 months implies demand will slow from its two-year trend
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Operating margin improvement of 3.4 percentage points over the last year demonstrates its ability to scale efficiently
Appian is trading at $38.80 per share, or 3.2x forward price-to-sales. Read our free research report to see why you should think twice about including APPN in your portfolio.
Atkore (ATKR)
Consensus Price Target: $93.50 (-0.1% implied return)
Protecting the things that power our world, Atkore (NYSE: ATKR) designs and manufactures electrical safety products.
Why Is ATKR Risky?
- Annual sales declines of 5.5% for the past two years show its products and services struggled to connect with the market during this cycle
- 11.5 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
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $93.56 per share, Atkore trades at 15.1x forward P/E. To fully understand why you should be careful with ATKR, check out our full research report (it’s free).
Thermo Fisher (TMO)
Consensus Price Target: $631.42 (1.3% implied return)
With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE: TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.
Why Is TMO Not Exciting?
- 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
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 5.1 percentage points
- Earnings per share fell by 1.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Thermo Fisher’s stock price of $623.09 implies a valuation ratio of 23.9x forward P/E. If you’re considering TMO for your portfolio, see our FREE research report to learn more.
Stocks We Like More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
