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.
OneWater (ONEW)
Consensus Price Target: $17 (4.8% implied return)
A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.
Why Does ONEW Worry Us?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Widely-available products (and therefore stiff competition) result in an inferior gross margin of 24.2% that must be offset through higher volumes
- High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $16.22 per share, OneWater trades at 11.6x forward P/E. To fully understand why you should be careful with ONEW, check out our full research report (it’s free).
Gray Television (GTN)
Consensus Price Target: $6.08 (1.4% implied return)
Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States.
Why Do We Steer Clear of GTN?
- Products and services fail to spark excitement with consumers, as seen in its flat sales over the last two years
- Free cash flow margin is forecasted to shrink by 5.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Gray Television is trading at $6 per share, or 0.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than GTN.
U.S. Bancorp (USB)
Consensus Price Target: $53.60 (8.8% implied return)
With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE:USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.
Why Does USB Fall Short?
- Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 4.9% over the last five years was below our standards for the banking sector
- Net interest margin of 2.7% reflects its high servicing and capital costs
- Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual tangible book value per share increases of 2% for the last five years
U.S. Bancorp’s stock price of $49.25 implies a valuation ratio of 1.4x forward P/B. If you’re considering USB for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
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.