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. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
AMETEK (AME)
Consensus Price Target: $220.24 (8.9% implied return)
Started from its humble beginnings in motor repair, AMETEK (NYSE: AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
Why Are We Cautious About AME?
- Annual revenue growth of 5.1% over the last two years was below our standards for the industrials sector
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
AMETEK is trading at $202.17 per share, or 25.8x forward P/E. If you’re considering AME for your portfolio, see our FREE research report to learn more.
Corning (GLW)
Consensus Price Target: $93.31 (6.3% implied return)
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Does GLW Fall Short?
- Annual sales growth of 6.7% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Free cash flow margin dropped by 4.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging
Corning’s stock price of $87.75 implies a valuation ratio of 30x forward P/E. To fully understand why you should be careful with GLW, check out our full research report (it’s free for active Edge members).
Northwest Bancshares (NWBI)
Consensus Price Target: $13.50 (5.7% implied return)
Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.
Why Do We Think NWBI Will Underperform?
- Annual net interest income growth of 5.7% over the last five years was below our standards for the banking sector
- Performance over the past two years shows its incremental sales were less profitable, as its 2.5% annual earnings per share growth trailed its revenue gains
- Annual tangible book value per share growth of 1% over the last five years was below our standards for the banking sector
At $12.77 per share, Northwest Bancshares trades at 1x forward P/B. Dive into our free research report to see why there are better opportunities than NWBI.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. 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 Comfort Systems (+782% 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.
