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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

THOR Industries (THO)

Consensus Price Target: $113.42 (-4.3% implied return)

Created through the acquisition and merger of various RV manufacturers, THOR Industries manufactures and sells a range of recreational vehicles, including motorhomes and travel trailers, catering to consumers seeking the freedom and comfort of the RV lifestyle.

Why Do We Think THO Will Underperform?

1. Annual sales declines of 3.3% for the past two years show its products and services struggled to connect with the market during this cycle
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Eroding returns on capital suggest its historical profit centers are aging

THOR Industries’s stock price of $118.56 implies a valuation ratio of 26.6x forward P/E. Check out our free in-depth research report to learn more about why THO doesn’t pass our bar.

Revvity (RVTY)

Consensus Price Target: $119.56 (22.7% implied return)

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Why Do We Pass on RVTY?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Adjusted operating margin declined by 7.1 percentage points over the last five years as its sales cratered
3. Sales were less profitable over the last five years as its earnings per share fell by 9.4% annually, worse than its revenue declines

Revvity is trading at $97.45 per share, or 19.2x forward P/E. Read our free research report to see why you should think twice about including RVTY in your portfolio.

DigitalBridge (DBRG)

Consensus Price Target: $16 (4.7% implied return)

Transforming from a traditional real estate investor to a digital-focused powerhouse in 2021, DigitalBridge Group (NYSE: DBRG) is a global digital infrastructure investment firm that manages capital and operates assets across data centers, cell towers, fiber networks, and edge infrastructure.

Why Are We Wary of DBRG?

1. Sales tumbled by 35.2% annually over the last five years, showing market trends are working against its favor during this cycle
2. Underwhelming 1.4% return on equity reflects management’s difficulties in finding profitable growth opportunities
3. Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes

At $15.28 per share, DigitalBridge trades at 2.3x forward P/E. If you’re considering DBRG for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here 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.