2 Unpopular Stocks That Deserve Some Love and 1 We Question

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.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. That said, here are two stocks where Wall Street’s pessimism is creating a buying opportunity and one facing legitimate challenges.

One Stock to Sell:

Helios (HLIO)

Consensus Price Target: $65.20 (14.1% implied return)

Founded on the principle of treating others as one wants to be treated, Helios (NYSE:HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.

Why Do We Think HLIO Will Underperform?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Helios’s stock price of $57.14 implies a valuation ratio of 20.9x forward P/E. Check out our free in-depth research report to learn more about why HLIO doesn’t pass our bar.

Two Stocks to Watch:

Humana (HUM)

Consensus Price Target: $287.38 (4.7% implied return)

With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Why Should You Buy HUM?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 12.8% annual sales growth over the last two years
2. Dominant market position is represented by its $126.3 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
3. ROIC punches in at 34.4%, illustrating management’s expertise in identifying profitable investments

At $274.55 per share, Humana trades at 20.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

Cardinal Health (CAH)

Consensus Price Target: $218.60 (5.2% implied return)

Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE:CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.

Why Do We Like CAH?

1. Massive revenue base of $234.3 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
2. Estimated revenue growth of 12.1% for the next 12 months implies demand will accelerate from its two-year trend
3. Earnings per share grew by 9.4% annually over the last five years and easily exceeded the peer group average

Cardinal Health is trading at $207.70 per share, or 20.9x 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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.