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 outlook is warranted and some alternatives with better fundamentals.

Amkor (AMKR)

Consensus Price Target: $24.38 (6.8% implied return)

Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ: AMKR) provides outsourced packaging and testing for semiconductors.

Why Do We Avoid AMKR?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.4% annually over the last two years
2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 14.4%
3. Poor expense management has led to an operating margin of 7% that is below the industry average

Amkor’s stock price of $22.83 implies a valuation ratio of 16.9x forward P/E. Check out our free in-depth research report to learn more about why AMKR doesn’t pass our bar.

GameStop (GME)

Consensus Price Target: $13.50 (-40.9% implied return)

Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE: GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.

Why Do We Think GME Will Underperform?

1. GameStop’s brick-and-mortar engine keeps stalling as gamers migrate to digital downloads, and management is closing more outlets after shuttering hundreds of stores last year
2. The share price remains an unpredictable meme-stock roller-coaster, and the purchase of thousands of Bitcoins have fueled huge swings
3. On the bright side, the company has a large cash pile that gives CEO Ryan Cohen room to buy more Bitcoin or fund its collectibles and trading-card push

GameStop is trading at $22.83 per share, or 45.6x forward P/E. To fully understand why you should be careful with GME, check out our full research report (it’s free).

iRhythm (IRTC)

Consensus Price Target: $174.75 (12.1% implied return)

Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ: IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.

Why Are We Cautious About IRTC?

1. Subscale operations are evident in its revenue base of $657.2 million, meaning it has fewer distribution channels than its larger rivals
2. Cash-burning history makes us doubt the long-term viability of its business model
3. High net-debt-to-EBITDA ratio of 15× could force the company to raise capital at unfavorable terms if market conditions deteriorate

At $155.90 per share, iRhythm trades at 72.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including IRTC in your portfolio.

High-Quality Stocks for All Market Conditions

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Don’t let fear keep you from great opportunities and take a look at 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).

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