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. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
Sweetgreen (SG)
Consensus Price Target: $8.08 (-21.6% implied return)
Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE:SG) is a casual quick service chain known for its healthy salads and bowls.
Why Do We Steer Clear of SG?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Sweetgreen is trading at $10.31 per share, or 1.7x forward price-to-sales. Read our free research report to see why you should think twice about including SG in your portfolio.
Bristol-Myers Squibb (BMY)
Consensus Price Target: $65.42 (10.6% implied return)
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Why Are We Cautious About BMY?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.1% over the last five years was below our standards for the healthcare sector
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 8.2 percentage points
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
Bristol-Myers Squibb’s stock price of $59.14 implies a valuation ratio of 9.8x forward P/E. Check out our free in-depth research report to learn more about why BMY doesn’t pass our bar.
United Bankshares (UBSI)
Consensus Price Target: $50.33 (8.7% implied return)
With roots dating back to 1982 and a strong presence in the Mid-Atlantic region, United Bankshares (NASDAQ:UBSI) is a bank holding company that provides commercial and retail banking services through its United Bank subsidiary across multiple states.
Why Are We Out on UBSI?
- Annual net interest income growth of 8.5% over the last five years was below our standards for the banking sector
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 3.2% annually
- Projected tangible book value per share growth of 6.8% for the next 12 months suggests sluggish capital generation
At $46.32 per share, United Bankshares trades at 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than UBSI.
Stocks We Like More
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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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.