Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. That said, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.
Teladoc (TDOC)
Consensus Price Target: $7.19 (11.2% implied return)
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Why Are We Wary of TDOC?
- Products and services fail to spark excitement with consumers, as seen in its flat sales over the last three years
- Focus on expanding its platform came at the expense of monetization as its average revenue per user fell by 9% annually
- Projected sales for the next 12 months are flat and suggest demand will be subdued
Teladoc is trading at $6.47 per share, or 5x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than TDOC.
Leslie's (LESL)
Consensus Price Target: $2.70 (-8.5% implied return)
Named after founder Philip Leslie, who established the company in 1963, Leslie’s (NASDAQ: LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services.
Why Do We Pass on LESL?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Sales were less profitable over the last three years as its earnings per share fell by 34.5% annually, worse than its revenue declines
At $2.95 per share, Leslie's trades at 23.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LESL doesn’t pass our bar.
Nelnet (NNI)
Consensus Price Target: $135 (5.3% implied return)
Starting as a student loan servicer in the 1970s and evolving through the changing landscape of education finance, Nelnet (NYSE: NNI) provides student loan servicing, education technology, payment processing, and banking services while managing a portfolio of education loans.
Why Does NNI Give Us Pause?
- Muted 5.5% annual revenue growth over the last five years shows its demand lagged behind its financials peers
- Low return on equity reflects management’s struggle to allocate funds effectively
Nelnet’s stock price of $128.27 implies a valuation ratio of 2.7x forward price-to-sales. Read our free research report to see why you should think twice about including NNI in your portfolio.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% 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.
