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.
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. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
Revolve (RVLV)
Consensus Price Target: $25.50 (-3.8% implied return)
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ: RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.
Why Do We Avoid RVLV?
- May need to improve its platform and marketing strategy as its 5.7% average growth in active customers underwhelmed
- Demand has been weak recently as it posted disappointing growth in its average revenue per buyer and struggled to expand its platform
- Earnings per share have dipped by 10.5% annually over the past three years, which is concerning because stock prices follow EPS over the long term
At $26.50 per share, Revolve trades at 21.1x forward EV/EBITDA. To fully understand why you should be careful with RVLV, check out our full research report (it’s free for active Edge members).
Revvity (RVTY)
Consensus Price Target: $113.67 (9.3% implied return)
Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.
Why Do We Think RVTY Will Underperform?
- 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
- Adjusted operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
- Earnings per share have contracted by 3.4% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
Revvity’s stock price of $104 implies a valuation ratio of 19.4x forward P/E. Read our free research report to see why you should think twice about including RVTY in your portfolio.
Wells Fargo (WFC)
Consensus Price Target: $93.71 (5% implied return)
Founded during the California Gold Rush in 1852 to provide banking and express delivery services to miners and merchants, Wells Fargo (NYSE: WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals and businesses.
Why Should You Sell WFC?
- Sizable revenue base leads to growth challenges as its 2.4% annual net interest income increases over the last five years fell short of other banking companies
- Net interest margin dropped by 45.3 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
- Estimated tangible book value per share growth of 4.9% for the next 12 months implies profitability will slow from its two-year trend
Wells Fargo is trading at $89.28 per share, or 1.6x forward P/B. Check out our free in-depth research report to learn more about why WFC doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 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
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