1 Unpopular Stock That Deserves a Second Chance and 2 Facing Headwinds

Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. That said, here is one stock where you should be greedy instead of fearful and two where the skepticism is well-placed.

Two Stocks to Sell:

Macy's (M)

Consensus Price Target: $13.46 (-0.7% implied return)

With a storied history that began with its 1858 founding, Macy’s (NYSE:M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Is M Risky?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability

At $13.55 per share, Macy's trades at 7.1x forward P/E. If you’re considering M for your portfolio, see our FREE research report to learn more.

CNA Financial (CNA)

Consensus Price Target: $45 (-9.3% 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. Large revenue base constrains its growth potential, as seen in its unexciting 7.4% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
2. Performance over the past two years shows its incremental sales were less profitable, as its 5.7% annual earnings per share growth trailed its revenue gains
3. Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 1.7% annually over the last five years

CNA Financial’s stock price of $49.61 implies a valuation ratio of 0.9x forward price-to-sales. To fully understand why you should be careful with CNA, check out our full research report (it’s free).

One Stock to Watch:

PJT (PJT)

Consensus Price Target: $173 (-4.3% implied return)

Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE:PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.

Why Should PJT Be on Your Watchlist?

1. Annual revenue growth of 18.5% over the last two years was superb and indicates its market share increased during this cycle
2. Additional sales over the last two years increased its profitability as the 23.2% annual growth in its earnings per share outpaced its revenue
3. ROE punches in at 27.3%, illustrating management’s expertise in identifying profitable investments

PJT is trading at $180.73 per share, or 26.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

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