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. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

Electronic Arts (EA)

Consensus Price Target: $175.53 (4% implied return)

Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ: EA) is one of the world’s largest video game publishers.

Why Are We Wary of EA?

1. Annual revenue growth of 1.2% over the last three years was below our standards for the consumer internet sector
2. Projected sales growth of 2.2% for the next 12 months suggests sluggish demand
3. Efficiency has decreased over the last few years as its EBITDA margin fell by 6.1 percentage points

Electronic Arts is trading at $168.80 per share, or 14.1x forward EV/EBITDA. If you’re considering EA for your portfolio, see our FREE research report to learn more.

Travel + Leisure (TNL)

Consensus Price Target: $67.45 (7.7% implied return)

Formerly known as Wyndham Destinations, Travel + Leisure (NYSE: TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.

Why Does TNL Fall Short?

1. Demand for its offerings was relatively low as its number of tours conducted has underwhelmed
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. High net-debt-to-EBITDA ratio of 8× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Travel + Leisure’s stock price of $62.63 implies a valuation ratio of 9.4x forward P/E. To fully understand why you should be careful with TNL, check out our full research report (it’s free).

EnerSys (ENS)

Consensus Price Target: $120 (15.6% implied return)

Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE: ENS) manufactures various kinds of batteries for a range of industries.

Why Does ENS Give Us Pause?

1. Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.6%
3. Poor free cash flow margin of 4.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $103.85 per share, EnerSys trades at 8.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than ENS.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.