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.
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 skepticism is well-placed and some better opportunities to consider.
C3.ai (AI)
Consensus Price Target: $8.82 (-0.8% implied return)
Named after the three Cs of its original focus—carbon, cloud computing, and customer relationship management—C3.ai (NYSE: AI) provides enterprise AI software that helps organizations develop, deploy, and operate large-scale artificial intelligence applications across various industries.
Why Do We Think AI Will Underperform?
- Customers had second thoughts about committing to its platform over the last year as its billings averaged 33.8% declines
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Negative free cash flow raises questions about the return timeline for its investments
C3.ai is trading at $8.89 per share, or 5.9x forward price-to-sales. Read our free research report to see why you should think twice about including AI in your portfolio.
Energizer (ENR)
Consensus Price Target: $21.50 (4% implied return)
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.
Why Do We Avoid ENR?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital on unfavorable terms if market conditions deteriorate
At $20.67 per share, Energizer trades at 6.3x forward P/E. Check out our free in-depth research report to learn more about why ENR doesn’t pass our bar.
Franklin Resources (BEN)
Consensus Price Target: $34.45 (1.6% implied return)
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE: BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Why Is BEN Risky?
- Annual revenue growth of 5.4% over the last five years was below our standards for the financials sector
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.6% annually while its revenue grew
- ROE of 8% reflects management’s challenges in identifying attractive investment opportunities
Franklin Resources’s stock price of $33.92 implies a valuation ratio of 11.5x forward P/E. If you’re considering BEN for your portfolio, see our FREE research report to learn more.
Stocks We Like More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
