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

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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two facing legitimate challenges.

Two Stocks to Sell:

Gap (GAP)

Consensus Price Target: $24.98 (0.5% implied return)

Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE:GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.

Why Does GAP Worry Us?

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. 2.7 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
3. Underwhelming 7.6% return on capital reflects management’s difficulties in finding profitable growth opportunities

Gap’s stock price of $24.86 implies a valuation ratio of 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than GAP.

Advanced Energy (AEIS)

Consensus Price Target: $205.80 (-2.1% implied return)

Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.

Why Do We Steer Clear of AEIS?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 3.1 percentage points
3. Waning returns on capital imply its previous profit engines are losing steam

Advanced Energy is trading at $210.32 per share, or 29.5x forward P/E. Read our free research report to see why you should think twice about including AEIS in your portfolio.

One Stock to Watch:

Ameris Bancorp (ABCB)

Consensus Price Target: $80.60 (8.5% implied return)

Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp (NYSE:ABCB) is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.

Why Do We Like ABCB?

1. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 18.7% annually, topping its revenue gains
2. Annual tangible book value per share growth of 13.9% over the past five years was outstanding, reflecting strong capital accumulation this cycle
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $74.29 per share, Ameris Bancorp trades at 1.3x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 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-small-cap company Comfort Systems (+782% 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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