3 Unpopular Stocks with Warning Signs

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 are three stocks facing legitimate challenges and some alternatives worth exploring instead.

Ryder (R)

Consensus Price Target: $211.10 (10.1% implied return)

As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE:R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.

Why Do We Pass on R?

1. Sizable revenue base leads to growth challenges as its 3.5% annual revenue increases over the last two years fell short of other industrials companies
2. Earnings per share have dipped by 4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. 5.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Ryder’s stock price of $191.69 implies a valuation ratio of 13.5x forward P/E. If you’re considering R for your portfolio, see our FREE research report to learn more.

IDEX (IEX)

Consensus Price Target: $193.77 (9% implied return)

Founded in 1988, IDEX (NYSE:IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.

Why Do We Avoid IEX?

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. Earnings per share fell by 3.1% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $177.78 per share, IDEX trades at 21.6x forward P/E. Read our free research report to see why you should think twice about including IEX in your portfolio.

Neogen (NEOG)

Consensus Price Target: $8.17 (13.4% implied return)

Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ:NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.

Why Are We Out on NEOG?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.8% annually over the last two years
2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
3. Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly

Neogen is trading at $7.20 per share, or 23.1x forward P/E. Dive into our free research report to see why there are better opportunities than NEOG.

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 9 Market-Beating Stocks. 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).

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