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.

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. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.

3M (MMM)

Consensus Price Target: $161.15 (3.2% implied return)

Producers of the first asthma inhaler, 3M Company (NYSE: MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.

Why Are We Out on MMM?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Earnings per share have contracted by 2.2% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

3M is trading at $156.15 per share, or 19.4x forward P/E. If you’re considering MMM for your portfolio, see our FREE research report to learn more.

Fastly (FSLY)

Consensus Price Target: $7.67 (0.9% implied return)

Taking its name from the core advantage it delivers to customers, Fastly (NYSE: FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.

Why Do We Pass on FSLY?

1. 13.6% annual revenue growth over the last three years was slower than its software peers
2. Sky-high servicing costs result in an inferior gross margin of 53.9% that must be offset through increased usage
3. Poor expense management has led to operating margin losses

Fastly’s stock price of $7.60 implies a valuation ratio of 1.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FSLY.

Navient (NAVI)

Consensus Price Target: $14.40 (5% implied return)

Spun off from Sallie Mae in 2014 to handle the company's loan servicing and collection operations, Navient (NASDAQ: NAVI) provides education loan servicing and business processing solutions that help manage federal student loans, private education loans, and government services.

Why Do We Steer Clear of NAVI?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 12.1% annually over the last five years
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Debt-to-equity ratio of 18.7× shows the firm has taken on excessive debt, leaving little room for error

At $13.71 per share, Navient trades at 12.1x forward P/E. If you’re considering NAVI for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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

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