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. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

Laureate Education (LAUR)

Consensus Price Target: $24.13 (8.1% implied return)

Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ: LAUR) is a global network of higher education institutions.

Why Do We Think Twice About LAUR?

1. Demand for its offerings was relatively low as its number of enrolled students has underwhelmed
2. Flat earnings per share over the last five years underperformed the sector average
3. Underwhelming 7.6% return on capital reflects management’s difficulties in finding profitable growth opportunities

Laureate Education’s stock price of $22.31 implies a valuation ratio of 14.9x forward P/E. To fully understand why you should be careful with LAUR, check out our full research report (it’s free).

Terex (TEX)

Consensus Price Target: $49.32 (7.2% implied return)

With humble beginnings as a dump truck company, Terex (NYSE: TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.

Why Is TEX Not Exciting?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Earnings per share have contracted by 16.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Free cash flow margin dropped by 6.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Terex is trading at $46.01 per share, or 9.5x forward P/E. Read our free research report to see why you should think twice about including TEX in your portfolio.

Lincoln Electric (LECO)

Consensus Price Target: $209.89 (4.2% implied return)

Headquartered in Ohio, Lincoln Electric (NASDAQ: LECO) manufactures and sells welding equipment for various industries.

Why Are We Wary of LECO?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Projected sales growth of 2.1% for the next 12 months suggests sluggish demand
3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.4% annually

At $201.44 per share, Lincoln Electric trades at 21.4x forward P/E. If you’re considering LECO for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.