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.

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.

Dillard's (DDS)

Consensus Price Target: $381.67 (-36.5% implied return)

With stores located largely in the Southern and Western US, Dillard’s (NYSE: DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Are We Cautious About DDS?

1. Absence of new stores indicates weak demand as management focuses on improving existing location performance
2. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
3. Projected sales decline of 1% for the next 12 months points to an even tougher demand environment ahead

Dillard's is trading at $600.94 per share, or 21.9x forward P/E. Check out our free in-depth research report to learn more about why DDS doesn’t pass our bar.

CSX (CSX)

Consensus Price Target: $39.29 (11.7% implied return)

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.

Why Should You Dump CSX?

1. Underwhelming unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Free cash flow margin shrank by 18.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

CSX’s stock price of $35.18 implies a valuation ratio of 19x forward P/E. Dive into our free research report to see why there are better opportunities than CSX.

Dell (DELL)

Consensus Price Target: $164.09 (9.5% implied return)

Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.

Why Is DELL Not Exciting?

1. Sizable revenue base leads to growth challenges as its 2.9% annual revenue increases over the last five years fell short of other business services companies
2. Underwhelming ARR growth of 3.6% suggests the company faced challenges in acquiring and retaining long-term customers
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.6 percentage points

At $149.84 per share, Dell trades at 14.3x forward P/E. To fully understand why you should be careful with DELL, check out our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.

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).

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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.