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.

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. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.

Packaging Corporation of America (PKG)

Consensus Price Target: $230.20 (5.1% implied return)

Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.

Why Do We Think Twice About PKG?

1. Underwhelming unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Efficiency has decreased over the last five years as its operating margin fell by 3.7 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $219.12 per share, Packaging Corporation of America trades at 20.7x forward P/E. Dive into our free research report to see why there are better opportunities than PKG.

Bio-Techne (TECH)

Consensus Price Target: $70 (6.8% implied return)

With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.

Why Are We Out on TECH?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Modest revenue base of $1.22 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
3. 11.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Bio-Techne’s stock price of $65.57 implies a valuation ratio of 33.8x forward P/E. Check out our free in-depth research report to learn more about why TECH doesn’t pass our bar.

Bristol-Myers Squibb (BMY)

Consensus Price Target: $58.04 (6.3% implied return)

With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.

Why Does BMY Fall Short?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.9% for the last two years
2. Estimated sales decline of 6.2% for the next 12 months implies a challenging demand environment
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Bristol-Myers Squibb is trading at $54.63 per share, or 9.6x forward P/E. To fully understand why you should be careful with BMY, check out our full research report (it’s free).

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 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.