Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.

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.

Advance Auto Parts (AAP)

Consensus Price Target: $52.60 (-13.1% implied return)

Founded in Virginia in 1932, Advance Auto Parts (NYSE: AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.

Why Should You Dump AAP?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Overall productivity fell over the last year as its plummeting sales were accompanied by a decline in its operating margin
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $60.50 per share, Advance Auto Parts trades at 23.2x forward P/E. To fully understand why you should be careful with AAP, check out our full research report (it’s free).

Array (ARRY)

Consensus Price Target: $9.25 (1.9% implied return)

Going public in October 2020, Array (NASDAQ: ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.

Why Do We Avoid ARRY?

1. Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.4% for the last five years
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Array is trading at $9.08 per share, or 13x forward P/E. If you’re considering ARRY for your portfolio, see our FREE research report to learn more.

First Interstate BancSystem (FIBK)

Consensus Price Target: $32.25 (0.2% implied return)

Tracing its roots back to 1971 and still guided by founding family principles, First Interstate BancSystem (NASDAQ: FIBK) operates a network of community banks across 14 western and midwestern states, offering comprehensive banking services to individuals, businesses, and government entities.

Why Do We Think FIBK Will Underperform?

1. Sales tumbled by 4.6% annually over the last two years, showing market trends are working against its favor during this cycle
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last five years

First Interstate BancSystem’s stock price of $32.20 implies a valuation ratio of 1x forward P/B. Check out our free in-depth research report to learn more about why FIBK 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 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).

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