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 skepticism is well-placed and some better opportunities to consider.

FedEx (FDX)

Consensus Price Target: $315.82 (-10.6% implied return)

Sporting one of the largest air cargo fleets in the world, FedEx (NYSE: FDX) is a global provider of parcel and cargo delivery services.

Why Should You Sell FDX?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.2% over the last two years was below our standards for the industrials sector
2. Poor free cash flow margin of 2.4% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $353.40 per share, FedEx trades at 17.2x forward P/E. If you’re considering FDX for your portfolio, see our FREE research report to learn more.

M&T Bank (MTB)

Consensus Price Target: $230.24 (0.9% implied return)

Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.

Why Does MTB Worry Us?

1. Muted 1.4% annual revenue growth over the last two years shows its demand lagged behind its banking peers
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.2% annually
3. Estimated tangible book value per share growth of 4.1% for the next 12 months implies profitability will slow from its two-year trend

M&T Bank’s stock price of $228.12 implies a valuation ratio of 1.2x forward P/B. Read our free research report to see why you should think twice about including MTB in your portfolio.

WaFd Bank (WAFD)

Consensus Price Target: $33.38 (-0.3% implied return)

Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ: WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.

Why Are We Out on WAFD?

1. 6.9% annual net interest income growth over the last five years was slower than its banking peers
2. 48.8 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
3. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 8.9% annually

WaFd Bank is trading at $33.48 per share, or 0.9x forward P/B. Check out our free in-depth research report to learn more about why WAFD doesn’t pass our bar.

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 5 Growth Stocks for this month. 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.