1 Unpopular Stock That Should Get More Attention and 2 We Find Risky

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 is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.

Two Stocks to Sell:

Lincoln Financial Group (LNC)

Consensus Price Target: $46.33 (4% implied return)

Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE:LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.

Why Are We Out on LNC?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Net premiums earned remained stagnant over the last five years, indicating expansion challenges this cycle
3. Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 14.9% annually over the last five years

Lincoln Financial Group’s stock price of $44.53 implies a valuation ratio of 0.9x forward P/B. If you’re considering LNC for your portfolio, see our FREE research report to learn more.

Stellar Bancorp (STEL)

Consensus Price Target: $32.40 (4.7% implied return)

Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE:STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.

Why Do We Avoid STEL?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 5.8% annually over the last two years
2. 36 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
3. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 8.6% annually, worse than its revenue

Stellar Bancorp is trading at $30.94 per share, or 0.9x forward P/B. To fully understand why you should be careful with STEL, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

Capital One (COF)

Consensus Price Target: $268.95 (10.9% implied return)

Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE:COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.

Why Are We Fans of COF?

1. Annual revenue growth of 15.2% over the last two years was superb and indicates its market share increased during this cycle
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 44.9% annually, topping its revenue gains
3. ROE of 10.9% shows management can invest its resources competently

At $242.50 per share, Capital One trades at 12.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. 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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