When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as 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. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
GoPro (GPRO)
Consensus Price Target: $0.63 (5.4% implied return)
Known for sponsoring extreme athletes, GoPro (NASDAQ:GPRO) is a camera company known for its POV videos and editing software.
Why Do We Avoid GPRO?
- Number of cameras sold has disappointed over the past two years, indicating weak demand for its offerings
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
At $0.59 per share, GoPro trades at 9.1x forward P/E. Dive into our free research report to see why there are better opportunities than GPRO.
Skechers (SKX)
Consensus Price Target: $63.16 (1.8% implied return)
Synonymous with "dad shoe", Skechers (NYSE:SKX) is a footwear company renowned for its comfortable, stylish, and affordable shoes for all ages.
Why Do We Pass on SKX?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Estimated sales growth of 7.4% for the next 12 months implies demand will slow from its two-year trend
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Skechers’s stock price of $62.02 implies a valuation ratio of 14.5x forward P/E. Check out our free in-depth research report to learn more about why SKX doesn’t pass our bar.
SolarEdge (SEDG)
Consensus Price Target: $14.94 (-24.2% implied return)
Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.
Why Are We Out on SEDG?
- Sluggish trends in its megawatts shipped suggest customers aren’t adopting its solutions as quickly as the company hoped
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
SolarEdge is trading at $19.70 per share, or 1x forward price-to-sales. Read our free research report to see why you should think twice about including SEDG in your portfolio.
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 176% over the last five years.
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.