3 Unpopular Stocks We Steer Clear Of
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.
At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Vail Resorts (MTN)
Consensus Price Target: $147.23 (7.6% implied return)
Founded by two Aspen, Colorado ski patrol guides, Vail Resorts (NYSE:MTN) is a mountain resort company offering luxury experiences in over 30 locations across the globe.
Why Do We Pass on MTN?
- Sluggish trends in its skier visits suggest customers aren’t adopting its solutions as quickly as the company hoped
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 9.9% for the last two years
- ROIC hasn’t moved, making investors question whether its recent investments can increase profitability
Vail Resorts’s stock price of $136.86 implies a valuation ratio of 21x forward P/E. To fully understand why you should be careful with MTN, check out our full research report (it’s free).
QCR Holdings (QCRH)
Consensus Price Target: $111.20 (8.3% implied return)
With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.
Why Do We Think Twice About QCRH?
- Annual net interest income growth of 9.1% over the last five years was below our standards for the banking sector
- Estimated net interest income growth of 3% for the next 12 months implies demand will slow from its five-year trend
- Expenses have increased as a percentage of revenue over the last five years as its efficiency ratio degraded by 2.3 percentage points
At $102.69 per share, QCR Holdings trades at 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than QCRH.
Hercules Capital (HTGC)
Consensus Price Target: $19.50 (10.3% implied return)
Named after the mythological hero known for his strength, Hercules Capital (NYSE:HTGC) is a business development company that provides debt financing to venture capital-backed and growth-stage technology and life sciences companies.
Why Does HTGC Give Us Pause?
- Earnings per share fell by 3.4% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Hercules Capital is trading at $17.68 per share, or 9.1x forward P/E. Read our free research report to see why you should think twice about including HTGC in your portfolio.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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.