3 Unpopular Stocks Walking a Fine Line

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. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.

Oxford Industries (OXM)

Consensus Price Target: $37.50 (-16.9% implied return)

The parent company of Tommy Bahama, Oxford Industries (NYSE:OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.

Why Should You Dump OXM?

1. 14.6% annual revenue growth over the last five years was slower than its consumer discretionary peers
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $45.11 per share, Oxford Industries trades at 17.5x forward P/E. Check out our free in-depth research report to learn more about why OXM doesn’t pass our bar.

Packaging Corporation of America (PKG)

Consensus Price Target: $235.90 (8% 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 Do We Think Twice About PKG?

1. Disappointing unit sales over the past two years suggest it might have to lower prices to accelerate growth
2. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 5.2 percentage points
3. Waning returns on capital imply its previous profit engines are losing steam

Packaging Corporation of America’s stock price of $218.46 implies a valuation ratio of 20.2x forward P/E. If you’re considering PKG for your portfolio, see our FREE research report to learn more.

First Financial Bankshares (FFIN)

Consensus Price Target: $33.75 (3.4% implied return)

With roots dating back to 1890 and a network spanning over 70 locations across the Lone Star State, First Financial Bankshares (NASDAQ:FFIN) is a Texas-focused regional bank providing commercial banking, trust services, and wealth management across numerous communities throughout the state.

Why Does FFIN Give Us Pause?

1. Sales trends were unexciting over the last five years as its 5.3% annual growth was below the typical banking company
2. Annual net interest income growth of 7.4% over the last five years was below our standards for the banking sector
3. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 4.7% annually

First Financial Bankshares is trading at $32.64 per share, or 2.2x forward P/B. Read our free research report to see why you should think twice about including FFIN in your portfolio.

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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 Kadant (+351% five-year return). Find your next big winner with StockStory today.