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 skepticism is well-placed and some better opportunities to consider.

The New York Times (NYT)

Consensus Price Target: $62.25 (9.2% implied return)

Founded in 1851, The New York Times (NYSE: NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.

Why Does NYT Worry Us?

1. Demand for its offerings was relatively low as its number of subscribers has underwhelmed
2. Estimated sales growth of 6.9% for the next 12 months is soft and implies weaker demand
3. Eroding returns on capital suggest its historical profit centers are aging

At $57.01 per share, The New York Times trades at 23.7x forward P/E. Check out our free in-depth research report to learn more about why NYT doesn’t pass our bar.

Petco (WOOF)

Consensus Price Target: $3.91 (5.6% implied return)

Historically known for its window displays of pets for sale or adoption, Petco (NASDAQ: WOOF) is a specialty retailer of pet food and supplies as well as a provider of services such as wellness checks and grooming.

Why Do We Steer Clear of WOOF?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Petco is trading at $3.70 per share, or 21.3x forward P/E. Read our free research report to see why you should think twice about including WOOF in your portfolio.

Credit Acceptance (CACC)

Consensus Price Target: $462.50 (-8.7% implied return)

Founded in 1972 by Donald Foss to serve customers overlooked by traditional lenders, Credit Acceptance (NASDAQ: CACC) provides auto financing solutions that enable car dealers to sell vehicles to consumers with limited or impaired credit histories.

Why Do We Avoid CACC?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 10% annually
3. Debt-to-equity ratio of 3.9× shows the firm has taken on excessive debt, leaving little room for error

Credit Acceptance’s stock price of $506.56 implies a valuation ratio of 12.3x forward P/E. If you’re considering CACC for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% 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

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