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.
Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Kraft Heinz (KHC)
Consensus Price Target: $27.08 (10.1% implied return)
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Why Should You Sell KHC?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Efficiency has decreased over the last year as its operating margin fell by 34.6 percentage points
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
At $24.61 per share, Kraft Heinz trades at 10.1x forward P/E. Check out our free in-depth research report to learn more about why KHC doesn’t pass our bar.
Keysight (KEYS)
Consensus Price Target: $214.92 (2.8% implied return)
Spun off from Hewlett-Packard in 2014, Keysight (NYSE:KEYS) offers electronic measurement products for use in various sectors.
Why Is KEYS Not Exciting?
- Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 1.1% for the past two years was weak
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 7.3% annually
- Eroding returns on capital suggest its historical profit centers are aging
Keysight’s stock price of $209.06 implies a valuation ratio of 25.6x forward P/E. Read our free research report to see why you should think twice about including KEYS in your portfolio.
Columbia Financial (CLBK)
Consensus Price Target: $17 (1.2% implied return)
Founded during the Roaring Twenties in 1926 and headquartered in Fair Lawn, New Jersey, Columbia Financial (NASDAQ:CLBK) operates federally chartered savings banks in New Jersey that offer traditional banking services including loans, deposits, and insurance products.
Why Do We Avoid CLBK?
- Net interest income was flat over the last five years, indicating it’s failed to expand this cycle
- Net interest margin of 2% is well below other banks, signaling its loans aren’t very profitable
- Earnings per share have dipped by 1% annually over the past five years, which is concerning because stock prices follow EPS over the long term
Columbia Financial is trading at $16.80 per share, or 1.5x forward P/B. Dive into our free research report to see why there are better opportunities than CLBK.
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 Strong Momentum Stocks for this week. 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 Comfort Systems (+782% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.