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

Kellanova (K)

Consensus Price Target: $83.39 (1% implied return)

With Corn Flakes as its first and most iconic product, Kellanova (NYSE:K) is a packaged foods company that is dominant in the cereal and snack categories.

Why Are We Cautious About K?

1. Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy

2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.9%

3. Earnings per share have contracted by 1.2% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Kellanova’s stock price of $82.56 implies a valuation ratio of 21x forward P/E. To fully understand why you should be careful with K, check out our full research report (it’s free).

Charter (CHTR)

Consensus Price Target: $411.92 (2.1% implied return)

Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Does CHTR Give Us Pause?

1. Performance surrounding its internet subscribers has lagged its peers

2. Sales are projected to be flat over the next 12 months and imply weak demand

3. Underwhelming 9.6% return on capital reflects management’s difficulties in finding profitable growth opportunities

Charter is trading at $403.29 per share, or 10.5x forward P/E. Dive into our free research report to see why there are better opportunities than CHTR.

Lindsay (LNN)

Consensus Price Target: $139 (5% implied return)

A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.

Why Do We Think Twice About LNN?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion

2. Sales are projected to be flat over the next 12 months and imply weak demand

3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term