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.
WillScot Mobile Mini (WSC)
Consensus Price Target: $23.45 (3.3% implied return)
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
Why Do We Steer Clear of WSC?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.8% annually over the last two years
- Efficiency has decreased over the last five years as its operating margin fell by 10.5 percentage points
- Issuance of new shares over the last five years caused its earnings per share to fall by 1.6% annually while its revenue grew
WillScot Mobile Mini is trading at $22.70 per share, or 21.2x forward P/E. Check out our free in-depth research report to learn more about why WSC doesn’t pass our bar.
Cummins (CMI)
Consensus Price Target: $643.36 (-3% implied return)
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems.
Why Are We Wary of CMI?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Gross margin of 24.6% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $662.69 per share, Cummins trades at 24.9x forward P/E. Read our free research report to see why you should think twice about including CMI in your portfolio.
WaFd Bank (WAFD)
Consensus Price Target: $37 (5.1% implied return)
Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ:WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.
Why Should You Sell WAFD?
- Annual net interest income growth of 7.5% over the last five years was below our standards for the banking sector
- Net interest margin of 2.6% is well below other banks, signaling its loans aren’t very profitable
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 2.6% annually while its revenue grew
WaFd Bank’s stock price of $35.20 implies a valuation ratio of 0.9x forward P/B. If you’re considering WAFD for your portfolio, see our FREE research report to learn more.
Stocks We Like More
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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.