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 stocks where the outlook is warranted and some alternatives with better fundamentals.
RingCentral (RNG)
Consensus Price Target: $57.64 (-20.7% implied return)
Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE:RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.
Why Is RNG Risky?
- Average billings growth of 6.5% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.5%
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
At $72.70 per share, RingCentral trades at 2.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than RNG.
Moderna (MRNA)
Consensus Price Target: $119.56 (-18.6% implied return)
Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ:MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.
Why Are We Out on MRNA?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 20.5% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Free cash flow margin dropped by 95.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Moderna’s stock price of $146.83 implies a valuation ratio of 28x forward price-to-sales. If you’re considering MRNA for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.