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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
Jack in the Box (JACK)
Consensus Price Target: $16.12 (7.3% implied return)
Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.
Why Are We Out on JACK?
- Restaurant closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
At $15.02 per share, Jack in the Box trades at 4.2x forward P/E. If you’re considering JACK for your portfolio, see our FREE research report to learn more.
IBM (IBM)
Consensus Price Target: $283.80 (34% implied return)
With a corporate history spanning over a century and once known for its iconic mainframe computers, IBM (NYSE: IBM) provides hybrid cloud computing platforms, AI solutions, consulting services, and enterprise infrastructure to help businesses modernize their operations.
Why Do We Think Twice About IBM?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 4.5% for the last five years
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.9%
- Earnings per share lagged its peers over the last five years as they only grew by 6.7% annually
IBM is trading at $211.79 per share, or 17.6x forward P/E. Check out our free in-depth research report to learn more about why IBM doesn’t pass our bar.
Oaktree Specialty Lending (OCSL)
Consensus Price Target: $12.43 (0.3% implied return)
Managed by Oaktree Capital Management, one of the world's premier alternative investment firms, Oaktree Specialty Lending (NASDAQ: OCSL) is a business development company that provides customized financing solutions to mid-market companies across various industries.
Why Do We Steer Clear of OCSL?
- Sales tumbled by 13.2% annually over the last two years, showing market trends are working against it during this cycle
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 5.9% annually over the last five years
Oaktree Specialty Lending’s stock price of $12.40 implies a valuation ratio of 8.8x forward P/E. Read our free research report to see why you should think twice about including OCSL in your portfolio.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
