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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.
Manhattan Associates (MANH)
Consensus Price Target: $213.90 (-3.9% implied return)
Built on a "versionless" cloud architecture that delivers quarterly updates to all customers, Manhattan Associates (NASDAQ: MANH) develops cloud-based software that helps retailers, wholesalers, and manufacturers manage their supply chains, inventory, and omnichannel operations.
Why Do We Think Twice About MANH?
- Products, pricing, or go-to-market strategy may need some adjustments as its 6.5% average billings growth over the last year was weak
- Gross margin of 55.8% reflects its high servicing costs
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 1.5 percentage points
Manhattan Associates’s stock price of $222.50 implies a valuation ratio of 10.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MANH.
SmartRent (SMRT)
Consensus Price Target: $1.45 (7.8% implied return)
Founded by an employee at a real estate rental company, SmartRent (NYSE: SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
Why Does SMRT Worry Us?
- Sales tumbled by 16.6% annually over the last two years, showing market trends are working against it during this cycle
- Historically negative EPS raises concerns for risk-averse investors and makes its earnings potential harder to gauge
- Negative free cash flow raises questions about the return timeline for its investments
At $1.35 per share, SmartRent trades at 37.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SMRT in your portfolio.
Calumet (CLMT)
Consensus Price Target: $47.40 (-2.1% implied return)
With roots dating back to 1919 and facilities strategically positioned from Louisiana to Montana, Calumet (NASDAQ: CLMT) refines crude oil into specialty products like lubricating oils, solvents, and waxes used in cosmetics, batteries, and industrial applications.
Why Are We Out on CLMT?
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 7.2%
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Calumet is trading at $48.41 per share, or 25.6x forward P/E. To fully understand why you should be careful with CLMT, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
