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Three stocks with bearish price targets and legitimate challenges include EnerSys (ENS), Steelcase (SCS), and MDU Resources (MDU). EnerSys faces declining unit sales and low free cash flow margin, while Steelcase has stagnating sales and lacking free cash flow generation. MDU Resources has annual sales declines and overleveraged net-debt-to-EBITDA ratio. Alternatives worth exploring include stocks with more promising growth prospects and stronger financial health.

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