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 facing legitimate challenges and some alternatives worth exploring instead.
Honeywell (HON)
Consensus Price Target: $244.40 (1% implied return)
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.
Why Does HON Fall Short?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 3.1 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
Honeywell is trading at $242.10 per share, or 22.8x forward P/E. To fully understand why you should be careful with HON, check out our full research report (it’s free).
Scorpio Tankers (STNG)
Consensus Price Target: $80.38 (13.2% implied return)
Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.
Why Does STNG Give Us Pause?
- Demand for its offerings was relatively low as its number of total vessels has underwhelmed
- Sales are projected to tank by 2.1% over the next 12 months as its demand continues evaporating
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
At $71 per share, Scorpio Tankers trades at 11.5x forward P/E. Read our free research report to see why you should think twice about including STNG in your portfolio.
Neogen (NEOG)
Consensus Price Target: $11.67 (6.6% implied return)
Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ: NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.
Why Are We Out on NEOG?
- Annual sales declines of 2.1% for the past two years show its products and services struggled to connect with the market during this cycle
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly
Neogen’s stock price of $10.95 implies a valuation ratio of 38.7x forward P/E. Dive into our free research report to see why there are better opportunities than NEOG.
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 6 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.
