2 Unpopular Stocks That Deserve Some Love and 1 We Question

When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.

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. Keeping that in mind, here are two stocks poised to prove Wall Street wrong and one facing legitimate challenges.

One Stock to Sell:

Roku (ROKU)

Consensus Price Target: $110.67 (4.9% implied return)

With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.

Why Are We Hesitant About ROKU?

1. Decision to emphasize platform growth over monetization has contributed to sluggish trends in its average revenue per user
2. Gross margin of 44% is below its competitors, leaving less money to invest in areas like marketing and R&D
3. Excessive marketing spend signals little organic demand and traction for its platform

Roku is trading at $105.46 per share, or 31.4x forward EV/EBITDA. If you’re considering ROKU for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

MACOM (MTSI)

Consensus Price Target: $183 (6% implied return)

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

Why Are We Fans of MTSI?

1. Market share has increased this cycle as its 22.1% annual revenue growth over the last two years was exceptional
2. Offerings are mission-critical for businesses and lead to a top-tier gross margin of 54.4%
3. Earnings per share have massively outperformed its peers over the last five years, increasing by 29.1% annually

MACOM’s stock price of $172.64 implies a valuation ratio of 40.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Northwest Pipe (NWPX)

Consensus Price Target: $64 (7.9% implied return)

Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe (NASDAQ:NWPX) is a manufacturer of pipeline systems for water infrastructure.

Why Do We Like NWPX?

1. Impressive 12.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin jumped by 13.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $59.31 per share, Northwest Pipe trades at 15.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.