3 Underperforming Stocks That Miss the Mark
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 27 2025
0mins
Should l Buy NYT?
Source: Yahoo Finance
Wall Street Concerns: Wall Street's bearish price targets for stocks like The New York Times, Petco, and Credit Acceptance indicate significant skepticism about their future performance, with concerns over low demand, weak sales trends, and high debt levels.
The New York Times (NYSE:NYT): The company faces challenges with underwhelming subscriber growth, soft estimated sales growth of 6.9%, and eroding returns on capital, trading at $57.01 per share with a forward P/E of 23.7x.
Petco (NASDAQ:WOOF): Petco's weak same-store sales and declining earnings per share raise concerns, compounded by a high net-debt-to-EBITDA ratio, with its stock priced at $3.70 per share and a forward P/E of 21.3x.
Credit Acceptance (NASDAQ:CACC): The company is struggling with flat sales and declining profitability, alongside a high debt-to-equity ratio of 3.9x, trading at $506.56 per share with a forward P/E of 12.3x, suggesting better investment opportunities elsewhere.
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Analyst Views on NYT
Wall Street analysts forecast NYT stock price to fall
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 72.300
Low
55.00
Averages
69.33
High
81.00
Current: 72.300
Low
55.00
Averages
69.33
High
81.00
About NYT
The New York Times Company is a global media organization that includes newspapers, digital and print products, and related businesses. It is focused on creating, collecting, and distributing news and information that helps the audience understand and engage with the world. The Company's news product, The New York Times (The Times) is available on mobile applications, on its Website (NYTimes.com) and as a printed newspaper, and with associated content such as podcasts. The Company's interest-specific products include The Athletic, Games, Cooking, and Audio (read-aloud audio service), which are available on mobile applications and Websites; and Wirecutter, an online review and recommendation product. Its other businesses include licensing operations; commercial printing operations; live events business; and other products and services under The Times brand. The Company’s Times’s print edition newspaper is published seven days a week in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
The New York Times Introduces Family Plan to Attract Users
- Family Plan Strategy: The New York Times' introduction of the 'Family Plan' allows users to share subscriptions under a premium model, aiming to enhance user loyalty through voluntary incentives rather than forced lockouts, thereby increasing subscription appeal.
- Revenue Growth Driver: This plan is seen as an 'additive' source of revenue, with 450,000 new digital subscribers added in Q4, bringing the total to 12.8 million and pushing digital revenues past $2 billion for the first time, indicating strong market demand.
- Market Performance Comparison: NYT's stock has risen 1.29% year-to-date, closely mirroring the S&P 500's 1.22% increase, with a 22.76% rise over the last six months and a 42.70% increase over the year, reflecting solid investment returns.
- Future Strategy Flexibility: While currently focused on the Family Plan, the company has not ruled out the possibility of implementing stricter measures in the future, indicating flexibility and adaptability in its user management strategy.
See More
Commerce Secretary Lutnick Faces Resignation Pressure Amid Epstein Revelations
- Resignation Calls: Republican Rep. Thomas Massie has urged Commerce Secretary Howard Lutnick to resign following revelations of extensive business and personal dealings with deceased sex offender Jeffrey Epstein, which could tarnish the administration's reputation and credibility.
- Revelatory Documents: Reports from The New York Times indicate that Lutnick interacted regularly with Epstein, maintaining contact years after Epstein's conviction, raising significant public and media scrutiny that could lead to a crisis of trust in Lutnick's position.
- Political Consequences: Massie highlighted that Lutnick's actions contrast sharply with several British officials who have resigned over similar associations, underscoring the importance of political accountability and potentially jeopardizing Lutnick's career and standing within the government.
- Ambiguous Department Response: A spokesperson for the Commerce Department claimed Lutnick had
See More
The Stock Market's Super Bowl Indicator Proves to Be More Reliable Than You Realize
U.S. Equity Futures Opening: U.S. equity futures will begin trading on Sunday before the Super Bowl LX matchup between the Seattle Seahawks and the New England Patriots.
Investor Caution: Investors are advised to wait until the game concludes before making preparations for Monday's market opening.
See More
Washington Post Cuts One-Third of Staff Amid Financial Struggles
- Massive Layoffs: The Washington Post announced layoffs affecting over 300 employees, representing one-third of its workforce, while closing or reducing several sections, including sports and local news, highlighting the severe financial pressures the company faces during its transformation.
- Failure to Meet Reader Needs: The company stated that the newspaper has failed to meet readers' needs, struggling to maintain financial health in a rapidly changing media environment, reflecting the deep crisis facing the traditional news industry.
- Negative Stock Reaction: Following the layoff announcement, shares of the New York Times fell over 6%, as investors expressed concerns about high costs associated with the pivot to video, indicating a pessimistic outlook for the future of traditional media.
- Damaged Brand Image: Former executive editor Marty Baron criticized Bezos's decisions, calling this one of the darkest days in the paper's history, and pointed out that Bezos's efforts to align with political interests have severely damaged the brand's reputation.
See More
Washington Post Layoffs Spark Widespread Criticism
- Massive Layoff Impact: The Washington Post's decision to lay off one-third of its staff, affecting international, editing, metro, and sports desks, is regarded as one of the darkest events in modern journalism, highlighting the company's significant challenges in addressing declining readership and revenue.
- Bezos Under Fire: Jeff Bezos, the owner of the Post, faces widespread criticism for his aggressive brand of capitalism, particularly in light of his spending on a $75 million documentary and lavish personal expenses, raising questions about the justification for such extensive layoffs.
- Severe Criticism from Former Executives: Former executive editor Martin Baron stated that the layoffs exacerbate the ongoing decline of print media and criticized Bezos's management decisions as leading to self-inflicted brand destruction, further alienating journalists and readers alike.
- Political Ramifications: Following Bezos's resignation as Amazon's CEO in 2021, the layoffs and management decisions at the Post could significantly influence its reporting direction in the upcoming 2024 presidential election, especially regarding its relationship with former President Trump.
See More
New York Times Earnings Beat Expectations but Shares Drop
- Earnings Beat: The New York Times reported earnings per share of $0.89, slightly exceeding the consensus estimate of $0.87, with revenue of $802.3 million surpassing expectations of $791.02 million; however, the stock dropped nearly 10%, indicating a negative market reaction.
- Subscriber Growth: The company added approximately 450,000 net digital-only subscribers in the quarter, bringing the total to 12.78 million, yet despite strong user growth, the market's response was negative, reflecting investor concerns about future growth prospects.
- Subscription Revenue Increase: Total subscription revenues rose 9.4% to $510.5 million, with digital-only revenues increasing 13.9% to $381.5 million, showcasing the success of bundle and multiproduct sales, although print subscription revenues fell 2.0% to $129.0 million, indicating challenges in traditional business.
- Advertising Revenue Growth: Fourth-quarter advertising revenues increased 16.1% to $191.7 million, with digital advertising revenues up 24.9% to $147.2 million; despite print advertising revenues declining 5.8% to $44.4 million, the overall growth in advertising revenue provided support for the company.
See More
The New York Times Introduces Family Plan to Attract Users
- Family Plan Strategy: The New York Times' introduction of the 'Family Plan' allows users to share subscriptions under a premium model, aiming to enhance user loyalty through voluntary incentives rather than forced lockouts, thereby increasing subscription appeal.
- Revenue Growth Driver: This plan is seen as an 'additive' source of revenue, with 450,000 new digital subscribers added in Q4, bringing the total to 12.8 million and pushing digital revenues past $2 billion for the first time, indicating strong market demand.
- Market Performance Comparison: NYT's stock has risen 1.29% year-to-date, closely mirroring the S&P 500's 1.22% increase, with a 22.76% rise over the last six months and a 42.70% increase over the year, reflecting solid investment returns.
- Future Strategy Flexibility: While currently focused on the Family Plan, the company has not ruled out the possibility of implementing stricter measures in the future, indicating flexibility and adaptability in its user management strategy.
See More
Commerce Secretary Lutnick Faces Resignation Pressure Amid Epstein Revelations
- Resignation Calls: Republican Rep. Thomas Massie has urged Commerce Secretary Howard Lutnick to resign following revelations of extensive business and personal dealings with deceased sex offender Jeffrey Epstein, which could tarnish the administration's reputation and credibility.
- Revelatory Documents: Reports from The New York Times indicate that Lutnick interacted regularly with Epstein, maintaining contact years after Epstein's conviction, raising significant public and media scrutiny that could lead to a crisis of trust in Lutnick's position.
- Political Consequences: Massie highlighted that Lutnick's actions contrast sharply with several British officials who have resigned over similar associations, underscoring the importance of political accountability and potentially jeopardizing Lutnick's career and standing within the government.
- Ambiguous Department Response: A spokesperson for the Commerce Department claimed Lutnick had
See More
The Stock Market's Super Bowl Indicator Proves to Be More Reliable Than You Realize
U.S. Equity Futures Opening: U.S. equity futures will begin trading on Sunday before the Super Bowl LX matchup between the Seattle Seahawks and the New England Patriots.
Investor Caution: Investors are advised to wait until the game concludes before making preparations for Monday's market opening.
See More
Washington Post Cuts One-Third of Staff Amid Financial Struggles
- Massive Layoffs: The Washington Post announced layoffs affecting over 300 employees, representing one-third of its workforce, while closing or reducing several sections, including sports and local news, highlighting the severe financial pressures the company faces during its transformation.
- Failure to Meet Reader Needs: The company stated that the newspaper has failed to meet readers' needs, struggling to maintain financial health in a rapidly changing media environment, reflecting the deep crisis facing the traditional news industry.
- Negative Stock Reaction: Following the layoff announcement, shares of the New York Times fell over 6%, as investors expressed concerns about high costs associated with the pivot to video, indicating a pessimistic outlook for the future of traditional media.
- Damaged Brand Image: Former executive editor Marty Baron criticized Bezos's decisions, calling this one of the darkest days in the paper's history, and pointed out that Bezos's efforts to align with political interests have severely damaged the brand's reputation.
See More
Washington Post Layoffs Spark Widespread Criticism
- Massive Layoff Impact: The Washington Post's decision to lay off one-third of its staff, affecting international, editing, metro, and sports desks, is regarded as one of the darkest events in modern journalism, highlighting the company's significant challenges in addressing declining readership and revenue.
- Bezos Under Fire: Jeff Bezos, the owner of the Post, faces widespread criticism for his aggressive brand of capitalism, particularly in light of his spending on a $75 million documentary and lavish personal expenses, raising questions about the justification for such extensive layoffs.
- Severe Criticism from Former Executives: Former executive editor Martin Baron stated that the layoffs exacerbate the ongoing decline of print media and criticized Bezos's management decisions as leading to self-inflicted brand destruction, further alienating journalists and readers alike.
- Political Ramifications: Following Bezos's resignation as Amazon's CEO in 2021, the layoffs and management decisions at the Post could significantly influence its reporting direction in the upcoming 2024 presidential election, especially regarding its relationship with former President Trump.
See More
New York Times Earnings Beat Expectations but Shares Drop
- Earnings Beat: The New York Times reported earnings per share of $0.89, slightly exceeding the consensus estimate of $0.87, with revenue of $802.3 million surpassing expectations of $791.02 million; however, the stock dropped nearly 10%, indicating a negative market reaction.
- Subscriber Growth: The company added approximately 450,000 net digital-only subscribers in the quarter, bringing the total to 12.78 million, yet despite strong user growth, the market's response was negative, reflecting investor concerns about future growth prospects.
- Subscription Revenue Increase: Total subscription revenues rose 9.4% to $510.5 million, with digital-only revenues increasing 13.9% to $381.5 million, showcasing the success of bundle and multiproduct sales, although print subscription revenues fell 2.0% to $129.0 million, indicating challenges in traditional business.
- Advertising Revenue Growth: Fourth-quarter advertising revenues increased 16.1% to $191.7 million, with digital advertising revenues up 24.9% to $147.2 million; despite print advertising revenues declining 5.8% to $44.4 million, the overall growth in advertising revenue provided support for the company.
See More
