1 Unpopular Stock that Deserves a Second Chance and 2 to Steer Clear Of

When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as 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 is one stock where you should be greedy instead of fearful and two facing legitimate challenges.

Two Stocks to Sell:

Crocs (CROX)

Consensus Price Target: $127.47 (14.1% implied return)

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

Why Does CROX Give Us Pause?

1. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
2. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 2.2 percentage points over the next year
3. Waning returns on capital imply its previous profit engines are losing steam

At $111.75 per share, Crocs trades at 9x forward P/E. Read our free research report to see why you should think twice about including CROX in your portfolio.

Boeing (BA)

Consensus Price Target: $208.86 (2.8% implied return)

One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.

Why Should You Dump BA?

1. Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Boeing’s stock price of $203.20 implies a valuation ratio of 28.8x forward EV-to-EBITDA. To fully understand why you should be careful with BA, check out our full research report (it’s free).

One Stock to Buy:

ServiceNow (NOW)

Consensus Price Target: $1,083 (7.2% implied return)

Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.

Why Are We Backing NOW?

1. Growth in its current remaining performance obligations (cRPO) has averaged 22.3% over the last year, showing it has a steady sales pipeline that will drive future revenue
2. Excellent operating margin of 12.9% highlights the efficiency of its business model, and its rise over the last year was fueled by some leverage on its fixed costs
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

ServiceNow is trading at $1,010 per share, or 15.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 176% over the last five years.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.