2 Unpopular Stocks That Deserve a Second Chance and 1 That Underwhelm

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.

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. That said, here are two stocks where you should be greedy instead of fearful and one facing legitimate challenges.

One Stock to Sell:

L.B. Foster (FSTR)

Consensus Price Target: $32.50 (3.5% implied return)

Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

Why Does FSTR Give Us Pause?

1. New orders were hard to come by as its average backlog growth of 4.4% over the past two years underwhelmed
2. Flat earnings per share over the last five years underperformed the sector average
3. ROIC of 3.7% reflects management’s challenges in identifying attractive investment opportunities

At $31.41 per share, L.B. Foster trades at 21.1x forward P/E. Check out our free in-depth research report to learn more about why FSTR doesn’t pass our bar.

Two Stocks to Watch:

Cohen & Steers (CNS)

Consensus Price Target: $72 (7.6% implied return)

Founded in 1986 as a pioneer in real estate investment trusts (REITs), Cohen & Steers (NYSE:CNS) is an investment manager specializing in real estate securities, infrastructure, real assets, and preferred securities for institutional and individual investors.

Why Should CNS Be on Your Watchlist?

1. Balance sheet strength has increased this cycle as its 20.1% annual tangible book value per share growth over the last two years was exceptional
2. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Cohen & Steers’s stock price of $66.89 implies a valuation ratio of 20.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Kinsale Capital Group (KNSL)

Consensus Price Target: $422.40 (10.2% implied return)

Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE:KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.

Why Do We Love KNSL?

1. Market penetration was impressive this cycle as its net premiums earned expanded by 21.2% annually over the last two years
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 43.9% over the last five years outstripped its revenue performance
3. Impressive 34.4% annual book value per share growth over the last two years indicates it’s building equity value this cycle

Kinsale Capital Group is trading at $383.43 per share, or 4x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.