Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
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 skepticism is well-placed and some better opportunities to consider.
onsemi (ON)
Consensus Price Target: $69.31 (-4.3% implied return)
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Are We Wary of ON?
- Sales tumbled by 14.8% annually over the last two years, showing market trends are working against its favor during this cycle
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.1%
- Efficiency has decreased over the last five years as its operating margin fell by 17.7 percentage points
onsemi is trading at $72.42 per share, or 24.7x forward P/E. Check out our free in-depth research report to learn more about why ON doesn’t pass our bar.
Clean Harbors (CLH)
Consensus Price Target: $313 (5.8% implied return)
Established in 1980, Clean Harbors (NYSE: CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.
Why Do We Think Twice About CLH?
- Muted 5.6% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Estimated sales growth of 4% for the next 12 months implies demand will slow from its two-year trend
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 2.8% annually
At $295.98 per share, Clean Harbors trades at 36.8x forward P/E. Dive into our free research report to see why there are better opportunities than CLH.
Vishay Precision (VPG)
Consensus Price Target: $52 (3.2% implied return)
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.
Why Is VPG Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 7% annually over the last two years
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 16.2% annually
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Vishay Precision’s stock price of $50.37 implies a valuation ratio of 65.6x forward P/E. Read our free research report to see why you should think twice about including VPG in your portfolio.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.
