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 outlook is warranted and some alternatives with better fundamentals.
Kraft Heinz (KHC)
Consensus Price Target: $25.03 (14.6% implied return)
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ: KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Why Do We Avoid KHC?
- Falling unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Sales are projected to tank by 2% over the next 12 months as its demand continues evaporating
- Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs
Kraft Heinz is trading at $21.83 per share, or 10.9x forward P/E. Read our free research report to see why you should think twice about including KHC in your portfolio.
Tapestry (TPR)
Consensus Price Target: $160.21 (12.2% implied return)
Originally founded as Coach, Tapestry (NYSE: TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Why Is TPR Risky?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Tapestry’s stock price of $142.81 implies a valuation ratio of 20.5x forward P/E. If you’re considering TPR for your portfolio, see our FREE research report to learn more.
LeMaitre (LMAT)
Consensus Price Target: $111 (1.9% implied return)
Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.
Why Are We Cautious About LMAT?
- Smaller revenue base of $249.6 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
At $108.97 per share, LeMaitre trades at 38.4x forward P/E. Check out our free in-depth research report to learn more about why LMAT doesn’t pass our bar.
Stocks We Like More
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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.
