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. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
TEGNA (TGNA)
Consensus Price Target: $21.33 (1.7% implied return)
Spun out of Gannett in 2015, TEGNA (NYSE: TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.
Why Do We Avoid TGNA?
- Annual sales declines of 2.5% for the past two years show its products and services struggled to connect with the market
- Sales are projected to tank by 8.5% over the next 12 months as its demand continues evaporating
- Free cash flow margin is forecasted to shrink by 4.5 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
TEGNA is trading at $20.97 per share, or 11.2x forward P/E. If you’re considering TGNA for your portfolio, see our FREE research report to learn more.
United Airlines (UAL)
Consensus Price Target: $108.65 (1.8% implied return)
Founded in 1926, United Airlines Holdings (NASDAQ: UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.
Why Are We Cautious About UAL?
- Performance surrounding its revenue passenger miles has lagged its peers
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Underwhelming 7.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
United Airlines’s stock price of $106.71 implies a valuation ratio of 9.8x forward P/E. To fully understand why you should be careful with UAL, check out our full research report (it’s free).
Glacier Bancorp (GBCI)
Consensus Price Target: $50.83 (2.5% implied return)
Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE: GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.
Why Do We Think Twice About GBCI?
- Annual net interest income growth of 7.1% over the last five years was below our standards for the banking sector
- Net interest margin of 2.8% reflects its high servicing and capital costs
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 3.1% annually while its revenue grew
At $49.60 per share, Glacier Bancorp trades at 1.6x forward P/B. Dive into our free research report to see why there are better opportunities than GBCI.
Stocks We Like More
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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).
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