Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like 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. That said, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.

TopBuild (BLD)

Consensus Price Target: $488.60 (-0.9% implied return)

Established in 2015 following a spinoff from Masco Corporation, TopBuild (NYSE: BLD) is a distributor and installer of insulation and other building products.

Why Does BLD Fall Short?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
3. Earnings per share lagged its peers over the last two years as they only grew by 2.5% annually

TopBuild is trading at $493.19 per share, or 24.1x forward P/E. Dive into our free research report to see why there are better opportunities than BLD.

AMN Healthcare Services (AMN)

Consensus Price Target: $20.86 (1.8% implied return)

With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE: AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.

Why Should You Dump AMN?

1. Declining travelers on assignment over the past two years imply it may need to invest in improvements to get back on track
2. Earnings per share have dipped by 10.5% annually over the past five years, which is concerning because stock prices follow EPS over the long term
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $20.49 per share, AMN Healthcare Services trades at 27.6x forward P/E. Check out our free in-depth research report to learn more about why AMN doesn’t pass our bar.

Amentum (AMTM)

Consensus Price Target: $36.18 (1.9% implied return)

With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE: AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.

Why Does AMTM Worry Us?

1. Annual sales growth of 2.4% over the last three years lagged behind its business services peers as its large revenue base made it difficult to generate incremental demand
2. Forecasted revenue decline of 1.4% for the upcoming 12 months implies demand will fall off a cliff
3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.3% for the last four years

Amentum’s stock price of $35.50 implies a valuation ratio of 14.8x forward P/E. If you’re considering AMTM for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.