3 Unpopular Stocks in the Doghouse

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.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. That said, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

Polaris (PII)

Consensus Price Target: $38.08 (-23.8% implied return)

Founded in 1954, Polaris (NYSE:PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.

Why Do We Pass on PII?

1. Annual sales declines of 11.6% for the past two years show its products and services struggled to connect with the market
2. Earnings per share fell by 27.4% annually over the last five years while its revenue was flat, showing each sale was less profitable
3. Waning returns on capital imply its previous profit engines are losing steam

Polaris’s stock price of $49.99 implies a valuation ratio of 33.3x forward P/E. If you’re considering PII for your portfolio, see our FREE research report to learn more.

Snap-on (SNA)

Consensus Price Target: $321.39 (1.2% implied return)

Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military.

Why Is SNA Not Exciting?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.3 percentage points
3. Waning returns on capital imply its previous profit engines are losing steam

At $317.57 per share, Snap-on trades at 15.8x forward P/E. To fully understand why you should be careful with SNA, check out our full research report (it’s free).

Crane (CR)

Consensus Price Target: $190.81 (3.2% implied return)

Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Why Should You Sell CR?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Estimated sales growth of 6.3% for the next 12 months is soft and implies weaker demand
3. Earnings per share were flat over the last five years and fell short of the peer group average

Crane is trading at $184.89 per share, or 32.6x forward P/E. Check out our free in-depth research report to learn more about why CR doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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

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