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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
Reynolds (REYN)
Consensus Price Target: $26.29 (0.2% implied return)
Best known for its aluminum foil, Reynolds (NASDAQ: REYN) is a household products company whose products focus on food storage, cooking, and waste.
Why Do We Avoid REYN?
- Flat unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Estimated sales decline of 1% for the next 12 months implies an even more challenging demand environment
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 25.4%
At $26.24 per share, Reynolds trades at 16.5x forward P/E. Dive into our free research report to see why there are better opportunities than REYN.
agilon health (AGL)
Consensus Price Target: $71.57 (-45.4% implied return)
Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE: AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.
Why Is AGL Not Exciting?
- Underwhelming customer growth over the past two years shows the company faced challenges in winning new contracts
- Demand will likely fall over the next 12 months as Wall Street expects flat revenue
- Cash-burning history makes us doubt the long-term viability of its business model
agilon health is trading at $131.00 per share, or 109.2x forward EV-to-EBITDA. To fully understand why you should be careful with AGL, check out our full research report (it’s free).
Viatris (VTRS)
Consensus Price Target: $17.81 (3.3% implied return)
Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ: VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.
Why Should You Dump VTRS?
- Annual sales declines of 2.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share fell by 9.2% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Negative returns on capital show management lost money while trying to expand the business, and its falling returns suggest its earlier profit pools are drying up
Viatris’s stock price of $17.24 implies a valuation ratio of 7x forward P/E. Check out our free in-depth research report to learn more about why VTRS doesn’t pass our bar.
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 is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
