Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.

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. Keeping that in mind, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.

Rapid7 (RPD)

Consensus Price Target: $11.71 (-7% implied return)

With its name inspired by the need for quick responses to cyber threats, Rapid7 (NASDAQ:RPD) provides cybersecurity software and services that help organizations detect vulnerabilities, monitor threats, and respond to security incidents.

Why Are We Out on RPD?

1. Offerings couldn’t generate interest over the last year as its billings have averaged 2.7% declines
2. Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 1.5 percentage points

Rapid7’s stock price of $12.60 implies a valuation ratio of 1x forward price-to-sales. Check out our free in-depth research report to learn more about why RPD doesn’t pass our bar.

HP (HPQ)

Consensus Price Target: $29.66 (-6.9% implied return)

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE:HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

Why Do We Pass on HPQ?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
3. Earnings per share were flat over the last five years and fell short of the peer group average

At $31.87 per share, HP trades at 10.5x forward P/E. Dive into our free research report to see why there are better opportunities than HPQ.

Republic Bancorp (RBCAA)

Consensus Price Target: $98 (5% implied return)

With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.

Why Are We Cautious About RBCAA?

1. Muted 5.9% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.9%
3. Estimated tangible book value per share growth of 7.8% for the next 12 months implies profitability will slow from its two-year trend

Republic Bancorp is trading at $93.36 per share, or 1.5x forward P/B. To fully understand why you should be careful with RBCAA, check out our full research report (it’s free).

Stocks We Like More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

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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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.