3 Unpopular Stocks 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.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

Packaging Corporation of America (PKG)

Consensus Price Target: $197.85 (-1.7% implied return)

Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.

Why Should You Sell PKG?

1. 1.4% annual revenue growth over the last two years was slower than its industrials peers
2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 22.7%
3. Earnings per share have contracted by 4.2% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

At $201.27 per share, Packaging Corporation of America trades at 12.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than PKG.

SAIC (SAIC)

Consensus Price Target: $121.28 (3.7% implied return)

With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ:SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches.

Why Do We Steer Clear of SAIC?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.5% annually over the last two years
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.7%
3. ROIC of 11.9% reflects management’s challenges in identifying attractive investment opportunities

SAIC’s stock price of $117 implies a valuation ratio of 12.3x forward P/E. Check out our free in-depth research report to learn more about why SAIC doesn’t pass our bar.

Banner Bank (BANR)

Consensus Price Target: $70 (3% implied return)

Founded in 1890 in Walla Walla, Washington, and evolving through more than a century of economic cycles, Banner Corporation (NASDAQ:BANR) operates Banner Bank, providing commercial banking services, loans, and financial products to individuals and businesses across Washington, Oregon, California, Idaho, and Utah.

Why Does BANR Give Us Pause?

1. Sales tumbled by 2.2% annually over the last two years, showing market trends are working against its favor during this cycle
2. Net interest income trends were unexciting over the last four years as its 3.5% annual growth was below the typical bank company
3. Sales were less profitable over the last two years as its earnings per share fell by 9% annually, worse than its revenue declines

Banner Bank is trading at $67.96 per share, or 1.2x forward P/B. Read our free research report to see why you should think twice about including BANR in your portfolio.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).

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