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. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
TEGNA (TGNA)
Consensus Price Target: $21.67 (11% 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 Steer Clear of TGNA?
- Muted 1.3% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Earnings per share lagged its peers over the last five years as they only grew by 7.9% annually
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
TEGNA’s stock price of $19.52 implies a valuation ratio of 8.4x forward P/E. If you’re considering TGNA for your portfolio, see our FREE research report to learn more.
Sphere Entertainment (SPHR)
Consensus Price Target: $75.30 (-10.9% implied return)
Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE: SPHR) hosts live entertainment events and distributes content across various media platforms.
Why Are We Out on SPHR?
- 8.5% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Low free cash flow margin of 1.9% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Improving returns on capital suggest management is identifying more profitable investments
Sphere Entertainment is trading at $84.50 per share, or 10.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SPHR.
Markel Group (MKL)
Consensus Price Target: $2,053 (-1.2% implied return)
Often referred to as a "mini Berkshire Hathaway" for its three-engine business model of insurance, investments, and wholly-owned businesses, Markel Group (NYSE: MKL) is a specialty insurance company that underwrites complex risks, manages investment portfolios, and owns a diverse collection of operating businesses.
Why Does MKL Give Us Pause?
- Scale presents growth limitations compared to smaller competitors, evidenced by its below-average 2.4% annualized growth in net premiums earned for the last two years
- Projected sales decline of 2.2% for the next 12 months points to a tough demand environment ahead
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 13.2% annually
At $2,078 per share, Markel Group trades at 1.4x forward P/B. Read our free research report to see why you should think twice about including MKL in your portfolio.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our 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 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 Exlservice (+354% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
