When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.

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 facing legitimate challenges and some alternatives worth exploring instead.

Vulcan Materials (VMC)

Consensus Price Target: $320.43 (9% implied return)

Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.

Why Does VMC Worry Us?

1. Demand for its offerings was relatively low as its number of tons shipped has underwhelmed
2. Anticipated sales growth of 4% for the next year implies demand will be shaky
3. High input costs result in an inferior gross margin of 25.2% that must be offset through higher volumes

Vulcan Materials’s stock price of $293.85 implies a valuation ratio of 30.3x forward P/E. Dive into our free research report to see why there are better opportunities than VMC.

Delta (DAL)

Consensus Price Target: $74.61 (8% implied return)

One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE: DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

Why Do We Pass on DAL?

1. Sluggish trends in its revenue passenger miles suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Free cash flow margin is expected to remain in place over the coming year
3. Improving returns on capital suggest management is identifying more profitable investments

Delta is trading at $69.10 per share, or 10.3x forward P/E. Check out our free in-depth research report to learn more about why DAL doesn’t pass our bar.

First Interstate BancSystem (FIBK)

Consensus Price Target: $37 (5.7% implied return)

Tracing its roots back to 1971 and still guided by founding family principles, First Interstate BancSystem (NASDAQ: FIBK) operates a network of community banks across 14 western and midwestern states, offering comprehensive banking services to individuals, businesses, and government entities.

Why Do We Avoid FIBK?

1. Annual sales declines of 4.3% for the past two years show its products and services struggled to connect with the market during this cycle
2. Net interest income is projected to tank by 1.4% over the next 12 months as demand evaporates
3. Earnings per share fell by 1.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

At $35.01 per share, First Interstate BancSystem trades at 1x forward P/B. Read our free research report to see why you should think twice about including FIBK in your portfolio.

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 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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.