2 Unpopular Stocks That Should Get More Attention and 1 Facing Challenges

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.

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. Keeping that in mind, here are two stocks where Wall Street’s pessimism is creating a buying opportunity and one where the outlook is warranted.

One Stock to Sell:

Dine Brands (DIN)

Consensus Price Target: $23.75 (2.2% implied return)

Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.

Why Is DIN Risky?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 4.6 percentage points
3. High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Dine Brands is trading at $23.25 per share, or 4.7x forward P/E. Check out our free in-depth research report to learn more about why DIN doesn’t pass our bar.

Two Stocks to Watch:

Construction Partners (ROAD)

Consensus Price Target: $120.17 (-0.4% implied return)

Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.

Why Is ROAD a Top Pick?

1. Average organic revenue growth of 9.6% over the past two years demonstrates its ability to expand independently without relying on acquisitions
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 70.6% outpaced its revenue gains
3. Free cash flow margin jumped by 5.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Construction Partners’s stock price of $120.63 implies a valuation ratio of 45x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Planet Labs (PL)

Consensus Price Target: $7.16 (-1.4% implied return)

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE:PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Why Could PL Be a Winner?

1. Annual revenue growth of 21.3% over the past five years was outstanding, reflecting market share gains this cycle
2. Adjusted operating margin expanded by 47.7 percentage points over the last five years as it scaled and became more efficient
3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 27% over the last two years outstripped its revenue performance

At $7.26 per share, Planet Labs trades at 7.6x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive 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.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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-small-cap company Exlservice (+354% 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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