1 Unpopular Stock That Deserves Some Love and 2 Facing Headwinds

Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.

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

Two Stocks to Sell:

Middleby (MIDD)

Consensus Price Target: $159.38 (7.4% implied return)

Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NYSE:MIDD) is a food service and equipment manufacturer.

Why Should You Sell MIDD?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Efficiency has decreased over the last five years as its operating margin fell by 21.1 percentage points
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Middleby’s stock price of $148.39 implies a valuation ratio of 16.2x forward P/E. Check out our free in-depth research report to learn more about why MIDD doesn’t pass our bar.

OPENLANE (KAR)

Consensus Price Target: $31.81 (4.2% implied return)

Facilitating the sale of approximately 1.3 million used vehicles in 2023, OPENLANE (NYSE:KAR) operates digital marketplaces that connect sellers and buyers of used vehicles across North America and Europe, facilitating wholesale transactions.

Why Is KAR Not Exciting?

1. Sales tumbled by 4% annually over the last five years, showing market trends are working against its favor during this cycle
2. Low returns on capital reflect management’s struggle to allocate funds effectively
3. 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

OPENLANE is trading at $30.53 per share, or 22.2x forward P/E. Read our free research report to see why you should think twice about including KAR in your portfolio.

One Stock to Buy:

The Bancorp (TBBK)

Consensus Price Target: $76.50 (11.1% implied return)

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ:TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

Why Are We Backing TBBK?

1. Annual net interest income growth of 16.2% over the past five years was outstanding, reflecting market share gains this cycle
2. Differentiated product suite is reflected in its Strong performance of its loan book leads to a High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 4.6%
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 33% exceeded its revenue gains over the last five years

At $68.84 per share, The Bancorp trades at 4.2x forward P/B. Is now the time to initiate a position? See for yourself in our full 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 (+1,326% between June 2020 and June 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.