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.
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. Keeping that in mind, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.
Lattice Semiconductor (LSCC)
Consensus Price Target: $81.23 (-1.2% implied return)
A global leader in its category, Lattice Semiconductor (NASDAQ: LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Why Does LSCC Give Us Pause?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 18.4% annually over the last two years
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 18.8 percentage points
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 5.5% annually
Lattice Semiconductor is trading at $82.22 per share, or 60.6x forward P/E. Read our free research report to see why you should think twice about including LSCC in your portfolio.
Tesla (TSLA)
Consensus Price Target: $401.40 (-7.8% implied return)
Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ: TSLA) is an electric vehicle company accelerating the world’s transition to sustainable energy.
Why Is TSLA Risky?
- Tesla's scale advantage in EV production leads to gross margins that exceed incumbents such as General Motors and Ford. However, a softer macroeconomic backdrop and tariff pressures have weighed on automobile sales, which are highly cyclical.
- The company's execution ability is a question mark given its long history of delays, such as the Cybertruck and Robotaxi launches. Its sizeable investments in projects with uncertain return timelines, like Optimus, also raise skepticism from investors.
- On the bright side, Tesla's Megapack product solves a critical problem for utilities needing renewable energy storage solutions. This innovation has made the energy segment the most profitable and fastest-growing business line for the company.
Tesla’s stock price of $435.36 implies a valuation ratio of 215.3x forward price-to-earnings. If you’re considering TSLA for your portfolio, see our FREE research report to learn more.
Nasdaq (NDAQ)
Consensus Price Target: $104.27 (4.5% implied return)
Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.
Why Does NDAQ Fall Short?
- Annual earnings per share growth of 9.2% underperformed its revenue over the last two years, showing its incremental sales were less profitable
At $99.76 per share, Nasdaq trades at 26.9x forward P/E. Check out our free in-depth research report to learn more about why NDAQ doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 6 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
