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. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

Consensus Price Target: $300 (13.1% implied return)

Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE:NPO) designs, manufactures, and sells products used for machinery in various industries.

Why Does NPO Give Us Pause?

Muted 1.3% annual revenue growth over the last five years shows its demand lagged behind its industrials peers

Below-average returns on capital indicate management struggled to find compelling investment opportunities

At $265.43 per share, Enpro trades at 29x forward P/E. Read our free research report to see why you should think twice about including NPO in your portfolio, it’s free.

Consensus Price Target: $33.71 (-15.5% implied return)

Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.

Why Do We Avoid SEDG?

Annual sales declines of 4.1% for the past five years show its products and services struggled to connect with the market during this cycle

Cash burn makes us question whether it can achieve sustainable long-term growth

Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

SolarEdge’s stock price of $39.89 implies a valuation ratio of 375.5x forward P/E. Check out our free in-depth research report to learn more about why SEDG doesn’t pass our bar.

Consensus Price Target: $38 (-0.3% implied return)

Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE:STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.

Why Are We Out on STEL?

Annual sales declines of 4.2% for the past two years show its products and services struggled to connect with the market during this cycle

Net interest margin shrank by 35.6 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive

Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 15.1% annually, worse than its revenue

Stellar Bancorp is trading at $38.11 per share, or 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than STEL.

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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.