1 Unpopular Stock That Deserves Some Love and 2 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.

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 where Wall Street’s pessimism is creating a buying opportunity and two where the outlook is warranted.

Two Stocks to Sell:

American Financial Group (AFG)

Consensus Price Target: $140.50 (7.2% implied return)

With roots dating back to 1872 and a business model that empowers local decision-making, American Financial Group (NYSE:AFG) is an insurance holding company that specializes in commercial property and casualty insurance products for businesses through its Great American Insurance Group.

Why Does AFG Fall Short?

1. Net premiums earned expanded by 3.9% annually over the last two years, falling below our expectations for the insurance sector
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 1.3% annually
3. Annual book value per share declines of 6% for the past five years show its capital management struggled during this cycle

American Financial Group is trading at $131.12 per share, or 2.1x forward P/B. Check out our free in-depth research report to learn more about why AFG doesn’t pass our bar.

Eastern Bank (EBC)

Consensus Price Target: $23.42 (8.4% implied return)

Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ:EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.

Why Are We Hesitant About EBC?

1. Inferior net interest margin of 3.2% means it must compensate for lower profitability through increased loan originations
2. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 4.5% annually over the last five years
3. Estimated tangible book value per share for the next 12 months is flat and implies a softer backdrop

At $21.60 per share, Eastern Bank trades at 1.1x forward P/B. To fully understand why you should be careful with EBC, check out our full research report (it’s free).

One Stock to Buy:

Nextpower (NXT)

Consensus Price Target: $121.74 (-1.6% implied return)

With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.

Why Is NXT a Good Business?

1. Impressive 25.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Free cash flow margin jumped by 22.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Returns on capital are growing as management capitalizes on its market opportunities

Nextpower’s stock price of $123.72 implies a valuation ratio of 26.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

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 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.