1 Unpopular Stock That Deserves a Second Chance and 2 Facing Headwinds

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.

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 where the skepticism is well-placed.

Two Stocks to Sell:

RTX (RTX)

Consensus Price Target: $195.95 (6.5% implied return)

Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.

Why Does RTX Fall Short?

1. Estimated sales growth of 5.2% for the next 12 months implies demand will slow from its two-year trend
2. Poor expense management has led to an operating margin of 7.5% that is below the industry average
3. ROIC of 4.1% reflects management’s challenges in identifying attractive investment opportunities

At $184 per share, RTX trades at 28.4x forward P/E. Read our free research report to see why you should think twice about including RTX in your portfolio.

RenaissanceRe (RNR)

Consensus Price Target: $290.93 (3.5% implied return)

Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE:RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.

Why Is RNR Not Exciting?

1. Estimated sales decline of 3.8% for the next 12 months implies a challenging demand environment
2. Costs have risen faster than its revenue over the last two years, causing its combined ratio to worsen by 11.6 percentage points
3. Incremental sales over the last two years were less profitable as its 2.8% annual earnings per share growth lagged its revenue gains

RenaissanceRe is trading at $281.16 per share, or 1.2x forward P/B. Check out our free in-depth research report to learn more about why RNR doesn’t pass our bar.

One Stock to Watch:

Molina Healthcare (MOH)

Consensus Price Target: $176.63 (1.2% implied return)

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Why Could MOH Be a Winner?

1. Market share has increased this cycle as its 19.3% annual revenue growth over the last five years was exceptional
2. Scale advantages are evident in its $44.55 billion revenue base, which provides operating leverage when demand is strong
3. Earnings per share have grown at a respectable 5.8% annual rate over the last five years, a bit better than the industry average

Molina Healthcare’s stock price of $174.56 implies a valuation ratio of 15x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 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).

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-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.