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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Yelp (YELP)
Consensus Price Target: $33.50 (7.1% implied return)
Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE: YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews.
Why Are We Wary of YELP?
- May need to improve its platform and marketing strategy as its 7.4% average growth in paying advertising accounts underwhelmed
- Underwhelming performance in both user spending and platform engagement suggests its platform is becoming less effective
- Estimated sales growth of 1.1% for the next 12 months implies demand will slow from its three-year trend
At $31.29 per share, Yelp trades at 4.8x forward EV/EBITDA. If you’re considering YELP for your portfolio, see our FREE research report to learn more.
Columbia Sportswear (COLM)
Consensus Price Target: $59.17 (7.1% implied return)
Originally founded as a hat store in 1938, Columbia Sportswear (NASDAQ: COLM) is a manufacturer of outerwear, sportswear, and footwear designed for outdoor enthusiasts.
Why Is COLM Risky?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Columbia Sportswear is trading at $55.25 per share, or 19.4x forward P/E. To fully understand why you should be careful with COLM, check out our full research report (it’s free for active Edge members).
Everest Group (EG)
Consensus Price Target: $364.73 (10.1% implied return)
Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE: EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.
Why Does EG Worry Us?
- Projected sales decline of 2.8% for the next 12 months points to a tough demand environment ahead
- Operational productivity has decreased over the last two years as its combined ratio worsened by 17.9 percentage points
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 50.5% annually while its revenue grew
Everest Group’s stock price of $331.30 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including EG in your portfolio.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
