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.
Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Flywire (FLYW)
Consensus Price Target: $14.55 (8.5% implied return)
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ: FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Why Does FLYW Fall Short?
- High servicing costs result in a relatively inferior gross margin of 62.9% that must be offset through increased usage
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Flywire’s stock price of $13.41 implies a valuation ratio of 2.6x forward price-to-sales. To fully understand why you should be careful with FLYW, check out our full research report (it’s free).
Bausch + Lomb (BLCO)
Consensus Price Target: $15.20 (3% implied return)
With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE: BLCO) develops and manufactures a comprehensive range of eye health products including contact lenses, pharmaceuticals, surgical devices, and consumer eye care solutions.
Why Is BLCO Not Exciting?
- Annual revenue growth of 7.2% over the last five years was below our standards for the healthcare sector
- Free cash flow margin shrank by 23.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $14.76 per share, Bausch + Lomb trades at 17.5x forward P/E. Read our free research report to see why you should think twice about including BLCO in your portfolio.
First Horizon (FHN)
Consensus Price Target: $25.01 (11.3% implied return)
Tracing its roots back to 1864 during the Civil War era, First Horizon (NYSE: FHN) is a Tennessee-based bank holding company that provides commercial and consumer banking, wealth management, and specialty financial services across multiple states.
Why Do We Think Twice About FHN?
- Annual sales declines of 6.4% for the past two years show its products and services struggled to connect with the market during this cycle
- Estimated net interest income growth of 3.4% for the next 12 months implies demand will slow from its five-year trend
- 20.3 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
First Horizon is trading at $22.47 per share, or 1.3x forward P/B. Check out our free in-depth research report to learn more about why FHN doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
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 6 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 Kadant (+351% 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.
