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. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.

Two Stocks to Sell:

Crocs (CROX)

Consensus Price Target: $102.91 (11.8% implied return)

Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe.

Why Should You Sell CROX?

1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
2. Free cash flow margin is forecasted to grow by 1.8 percentage points in the coming year, potentially giving the company more chips to play with
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Crocs’s stock price of $92.01 implies a valuation ratio of 7x forward P/E. To fully understand why you should be careful with CROX, check out our full research report (it’s free).

MGIC Investment (MTG)

Consensus Price Target: $28.42 (6.1% implied return)

Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE:MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments.

Why Does MTG Give Us Pause?

1. 1.1% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue
3. Earnings per share lagged its peers over the last two years as they only grew by 11.6% annually

At $26.80 per share, MGIC Investment trades at 1x forward P/B. Read our free research report to see why you should think twice about including MTG in your portfolio.

One Stock to Buy:

Nelnet (NNI)

Consensus Price Target: $140 (8.9% implied return)

Starting as a student loan servicer in the 1970s and evolving through the changing landscape of education finance, Nelnet (NYSE:NNI) provides student loan servicing, education technology, payment processing, and banking services while managing a portfolio of education loans.

Why Will NNI Outperform?

1. Impressive 21.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 134% exceeded its revenue gains over the last two years

Nelnet is trading at $128.51 per share, or 14.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 Strong Momentum 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.