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. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.
Marriott (MAR)
Consensus Price Target: $294.48 (-3.9% implied return)
Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ:MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.
Why Do We Steer Clear of MAR?
- Weak revenue per room over the past two years indicates challenges in maintaining pricing power and occupancy rates
- Operating margin of 15.5% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Poor free cash flow margin of 9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $306.41 per share, Marriott trades at 28.2x forward P/E. To fully understand why you should be careful with MAR, check out our full research report (it’s free for active Edge members).
3M (MMM)
Consensus Price Target: $174.25 (7.7% implied return)
Producers of the first asthma inhaler, 3M Company (NYSE:MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
Why Are We Out on MMM?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.9%
- Earnings per share have dipped by 1.5% annually over the past five years, which is concerning because stock prices follow EPS over the long term
3M’s stock price of $161.76 implies a valuation ratio of 19.2x forward P/E. Read our free research report to see why you should think twice about including MMM in your portfolio.
BancFirst (BANF)
Consensus Price Target: $121.67 (8.2% implied return)
Operating as a "super community bank" with a decentralized management approach that emphasizes local responsiveness, BancFirst Corporation (NASDAQ:BANF) operates as a financial holding company providing commercial banking services to retail customers and small to medium-sized businesses primarily in Oklahoma and Texas.
Why Are We Wary of BANF?
- 9.7% annual net interest income growth over the last five years was slower than its banking peers
- Estimated net interest income growth of 4.5% for the next 12 months implies demand will slow from its five-year trend
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 3.5% annually
BancFirst is trading at $112.44 per share, or 2x forward P/B. If you’re considering BANF for your portfolio, see our FREE research report to learn more.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.