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.

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

Frontdoor (FTDR)

Consensus Price Target: $60.25 (-9.5% implied return)

Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ: FTDR) is a provider of home warranty and service plans.

Why Are We Hesitant About FTDR?

1. Muted 6.8% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
2. Sluggish trends in its home service plans suggest customers aren’t adopting its solutions as quickly as the company hoped
3. Estimated sales growth of 8.5% for the next 12 months is soft and implies weaker demand

At $66.54 per share, Frontdoor trades at 18.5x forward P/E. To fully understand why you should be careful with FTDR, check out our full research report (it’s free).

ANI Pharmaceuticals (ANIP)

Consensus Price Target: $99 (4.9% implied return)

With a diverse portfolio of 116 pharmaceutical products and a growing rare disease platform, ANI Pharmaceuticals (NASDAQ: ANIP) develops, manufactures, and markets branded and generic prescription pharmaceuticals, with a focus on rare disease treatments.

Why Does ANIP Fall Short?

1. Smaller revenue base of $747.4 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 5.6 percentage points
3. Push for growth has led to negative returns on capital, signaling value destruction

ANI Pharmaceuticals’s stock price of $94.34 implies a valuation ratio of 14.8x forward P/E. If you’re considering ANIP for your portfolio, see our FREE research report to learn more.

S&T Bancorp (STBA)

Consensus Price Target: $41 (6.8% implied return)

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ: STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

Why Do We Think Twice About STBA?

1. Annual net interest income growth of 3.9% over the last five years was below our standards for the banking sector
2. Anticipated net interest income growth of 5.1% for the next year implies demand will be shaky
3. Net interest margin dropped by 35.7 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market

S&T Bancorp is trading at $38.38 per share, or 1x forward P/B. Dive into our free research report to see why there are better opportunities than STBA.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

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-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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