3 Unpopular Stocks We 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.
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.
Match Group (MTCH)
Consensus Price Target: $41.31 (6.9% implied return)
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Are We Hesitant About MTCH?
- Value proposition isn’t resonating strongly as its payers averaged 4.5% drops over the last two years
- Demand has fallen off a cliff over the last two years as its average revenue per user fell by 12.1% annually while it struggled to expand its customer base
- Demand will likely fall over the next 12 months as Wall Street expects flat revenue
Match Group is trading at $38.65 per share, or 9.7x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than MTCH.
PubMatic (PUBM)
Consensus Price Target: $12.89 (1.9% implied return)
Powering billions of daily ad impressions across the open internet, PubMatic (NASDAQ:PUBM) operates a technology platform that helps publishers maximize revenue from their digital advertising inventory while giving advertisers more control and transparency.
Why Are We Out on PUBM?
- Customers have churned over the last year due to the commoditized nature of its software, as reflected in its 96% net revenue retention rate
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Projected 9.4 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
At $12.65 per share, PubMatic trades at 2.1x forward price-to-sales. To fully understand why you should be careful with PUBM, check out our full research report (it’s free).
Azenta (AZTA)
Consensus Price Target: $27.80 (4.3% implied return)
Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ:AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.
Why Should You Sell AZTA?
- Sales tumbled by 4.3% annually over the last two years, showing market trends are working against it during this cycle
- Earnings per share have contracted by 24.8% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Negative free cash flow raises questions about the return timeline for its investments
Azenta’s stock price of $26.66 implies a valuation ratio of 45.1x forward P/E. Check out our free in-depth research report to learn more about why AZTA doesn’t pass our bar.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.