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華爾街日報3 Unpopular Stocks with Open Questions
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.
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 skepticism is well-placed and some better opportunities to consider.
Tapestry (TPR)
Consensus Price Target: $128.33 (-3.9% implied return)
Originally founded as Coach, Tapestry (NYSE:TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Why Do We Pass on TPR?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Poor expense management has led to an operating margin of 11.7% that is below the industry average
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $133.48 per share, Tapestry trades at 23x forward P/E. To fully understand why you should be careful with TPR, check out our full research report (it’s free for active Edge members).
Marriott Vacations (VAC)
Consensus Price Target: $64 (2.3% implied return)
Spun off from Marriott International in 1984, Marriott Vacations (NYSE:VAC) is a vacation company providing leisure experiences for travelers around the world.
Why Do We Think VAC Will Underperform?
- Demand for its offerings was relatively low as its number of conducted tours has underwhelmed
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Marriott Vacations’s stock price of $62.56 implies a valuation ratio of 8.5x forward P/E. If you’re considering VAC for your portfolio, see our FREE research report to learn more.
Taboola (TBLA)
Consensus Price Target: $4.80 (11.8% implied return)
Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ:TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Why Are We Hesitant About TBLA?
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 1.3 percentage points
- Earnings per share have dipped by 25.3% annually over the past four years, which is concerning because stock prices follow EPS over the long term
- Push for growth has led to negative returns on capital, signaling value destruction
Taboola is trading at $4.30 per share, or 10x forward P/E. Read our free research report to see why you should think twice about including TBLA in your portfolio.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.