Nasdaq
华尔街日报3 Unpopular Stocks We Steer Clear Of
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.
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 facing legitimate challenges and some alternatives worth exploring instead.
Vestis (VSTS)
Consensus Price Target: $6.30 (-7.2% implied return)
Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE:VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.
Why Is VSTS Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2% annually over the last two years
- 6.1 percentage point decline in its free cash flow margin over the last four years reflects the company’s increased investments to defend its market position
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Vestis’s stock price of $6.79 implies a valuation ratio of 18.8x forward P/E. If you’re considering VSTS for your portfolio, see our FREE research report to learn more.
Exact Sciences (EXAS)
Consensus Price Target: $104.56 (2.7% implied return)
With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ:EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.
Why Are We Cautious About EXAS?
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Negative returns on capital show that some of its growth strategies have backfired
Exact Sciences is trading at $101.77 per share, or 120.9x forward P/E. To fully understand why you should be careful with EXAS, check out our full research report (it’s free for active Edge members).
Fortrea (FTRE)
Consensus Price Target: $13.25 (-24.2% 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 Pass on FTRE?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.6% annually over the last four years
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $17.50 per share, Fortrea trades at 25.5x forward P/E. Check out our free in-depth research report to learn more about why FTRE doesn’t pass our bar.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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-micro-cap company Tecnoglass (+1,754% 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.