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. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

Marriott (MAR)

Consensus Price Target: $285.29 (8.6% implied return)

Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ: MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.

Why Are We Cautious About MAR?

1. Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels
2. Anticipated sales growth of 4.4% for the next year implies demand will be shaky
3. Low free cash flow margin of 8.7% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Marriott is trading at $262.62 per share, or 24.8x forward P/E. Check out our free in-depth research report to learn more about why MAR doesn’t pass our bar.

Insteel (IIIN)

Consensus Price Target: $39 (0.4% implied return)

Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE: IIIN) provides steel wire reinforcing products for concrete.

Why Does IIIN Worry Us?

1. Annual sales declines of 7% for the past two years show its products and services struggled to connect with the market during this cycle
2. Sales were less profitable over the last two years as its earnings per share fell by 19.5% annually, worse than its revenue declines
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $38.83 per share, Insteel trades at 15x forward P/E. Read our free research report to see why you should think twice about including IIIN in your portfolio.

Knowles (KN)

Consensus Price Target: $22.50 (-3.8% implied return)

With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE: KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.

Why Is KN Risky?

1. Sales tumbled by 5.3% annually over the last five years, showing market trends are working against its favor during this cycle
2. Smaller revenue base of $563.1 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Underwhelming 7.8% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam

Knowles’s stock price of $23.40 implies a valuation ratio of 19.1x forward P/E. To fully understand why you should be careful with KN, check out our full research report (it’s free).

Stocks We Like More

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 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 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

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