3 Unpopular Stocks We Approach with Caution

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 are three stocks facing legitimate challenges and some alternatives worth exploring instead.

Boston Beer (SAM)

Consensus Price Target: $237.72 (9.1% implied return)

Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Why Does SAM Worry Us?

1. Products have few die-hard fans as sales have declined by 2% annually over the last three years
2. Revenue base of $1.96 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Projected sales for the next 12 months are flat and suggest demand will be subdued

At $217.88 per share, Boston Beer trades at 23.4x forward P/E. Read our free research report to see why you should think twice about including SAM in your portfolio.

Littelfuse (LFUS)

Consensus Price Target: $353.60 (-6.1% implied return)

The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.

Why Does LFUS Give Us Pause?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Earnings per share have dipped by 4.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Littelfuse is trading at $376.70 per share, or 28.6x forward P/E. To fully understand why you should be careful with LFUS, check out our full research report (it’s free).

Provident Financial Services (PFS)

Consensus Price Target: $25 (14.1% implied return)

Founded in 1839 and serving communities across New Jersey, Pennsylvania, and New York, Provident Financial Services (NYSE:PFS) operates a regional bank providing commercial, residential, and consumer lending alongside wealth management and insurance services.

Why Are We Wary of PFS?

1. Projected net interest income decline of 7.4% for the next 12 months points to a tough demand environment ahead
2. Inferior net interest margin of 3.3% means it must compensate for lower profitability through increased loan originations
3. Tangible book value per share tumbled by 2.1% annually over the last two years, showing banking sector trends are working against its favor during this cycle

Provident Financial Services’s stock price of $21.91 implies a valuation ratio of 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than PFS.

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).

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.