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.

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.

CNA Financial (CNA)

Consensus Price Target: $43 (-11.7% implied return)

With roots dating back to 1853 and majority ownership by Loews Corporation, CNA Financial (NYSE: CNA) is a commercial property and casualty insurance provider offering coverage for businesses, including professional liability, surety bonds, and specialized risk management services.

Why Are We Out on CNA?

1. Scale presents growth limitations compared to smaller competitors, evidenced by its below-average 7.2% annualized growth in net premiums earned for the last two years
2. Performance over the past two years shows its incremental sales were less profitable, as its 2.2% annual earnings per share growth trailed its revenue gains
3. Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 1.7% annually over the last five years

CNA Financial is trading at $48.69 per share, or 10.7x forward P/E. To fully understand why you should be careful with CNA, check out our full research report (it’s free).

Independent Bank (INDB)

Consensus Price Target: $90 (7.6% implied return)

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Why Does INDB Fall Short?

1. Sales trends were unexciting over the last two years as its 8.2% annual growth was below the typical banking company
2. Annual earnings per share growth of 1.3% underperformed its revenue over the last two years, showing its incremental sales were less profitable
3. Muted 3.8% annual tangible book value per share growth over the last two years shows its capital generation lagged behind its banking peers

Independent Bank’s stock price of $83.68 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why INDB doesn’t pass our bar.

Community Bank (CBU)

Consensus Price Target: $67.50 (1.7% implied return)

Tracing its roots back to 1866 in upstate New York, Community Financial System (NYSE: CBU) is a financial holding company that provides banking, employee benefits, wealth management, and insurance services to retail, commercial, and municipal customers.

Why Are We Wary of CBU?

1. Annual net interest income growth of 6.6% over the last five years was below our standards for the banking sector
2. Performance over the past five years shows its incremental sales were less profitable, as its 4.8% annual earnings per share growth trailed its revenue gains
3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 3% annually over the last five years

At $66.34 per share, Community Bank trades at 1.6x forward P/B. Dive into our free research report to see why there are better opportunities than CBU.

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.