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 outlook is warranted and some alternatives with better fundamentals.
Zumiez (ZUMZ)
Consensus Price Target: $18 (-11.5% implied return)
With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ: ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.
Why Do We Steer Clear of ZUMZ?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Modest revenue base of $900.3 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Persistent operating margin losses suggest the business manages its expenses poorly
Zumiez is trading at $20.34 per share, or 56.5x forward P/E. Dive into our free research report to see why there are better opportunities than ZUMZ.
Guess (GES)
Consensus Price Target: $16.75 (-0.1% implied return)
Flexing the iconic upside-down triangle logo with a question mark, Guess (NYSE: GES) is a global fashion brand known for its trendy clothing, accessories, and denim wear.
Why Should You Sell GES?
- Sales trends were unexciting over the last two years as its 7.3% annual growth was below the typical consumer discretionary company
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $16.77 per share, Guess trades at 11.6x forward P/E. Read our free research report to see why you should think twice about including GES in your portfolio.
M&T Bank (MTB)
Consensus Price Target: $217.90 (7.9% implied return)
Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.
Why Are We Wary of MTB?
- Sales tumbled by 1.8% annually over the last two years, showing market trends are working against its favor during this cycle
- Estimated net interest income growth of 5.5% for the next 12 months implies demand will slow from its five-year trend
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 24.3 basis points (100 basis points = 1 percentage point)
M&T Bank’s stock price of $202.02 implies a valuation ratio of 1.2x forward P/B. If you’re considering MTB for your portfolio, see our FREE research report to learn more.
Stocks We Like More
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 Growth Stocks for this month. 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
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