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.
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.
Kohl's (KSS)
Consensus Price Target: $21.82 (-3.4% implied return)
Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE: KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.
Why Do We Pass on KSS?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Earnings per share have contracted by 29.6% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
- 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $22.58 per share, Kohl's trades at 19.2x forward P/E. Read our free research report to see why you should think twice about including KSS in your portfolio.
CSG (CSGS)
Consensus Price Target: $80.70 (4.4% implied return)
Powering billions of critical customer interactions annually, CSG Systems (NASDAQ: CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.
Why Are We Hesitant About CSGS?
- 2.3% annual revenue growth over the last two years was slower than its business services peers
- Estimated sales growth of 1.7% for the next 12 months is soft and implies weaker demand
- Diminishing returns on capital suggest its earlier profit pools are drying up
CSG is trading at $77.27 per share, or 15.5x forward P/E. Dive into our free research report to see why there are better opportunities than CSGS.
Peoples Bancorp (PEBO)
Consensus Price Target: $33.08 (8.6% implied return)
Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ: PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.
Why Does PEBO Fall Short?
- Muted 5.9% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Net interest margin shrank by 44.7 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
- Earnings per share fell by 13.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
Peoples Bancorp’s stock price of $30.46 implies a valuation ratio of 0.9x forward P/B. If you’re considering PEBO 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 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-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
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