1 Unpopular Stock That Deserves Some Love and 2 We Turn Down

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 is one stock where you should be greedy instead of fearful and two facing legitimate challenges.

Two Stocks to Sell:

Etsy (ETSY)

Consensus Price Target: $72.40 (-1.9% implied return)

Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NYSE:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.

Why Do We Think Twice About ETSY?

1. Struggled with new customer acquisition as its active buyers averaged 1.7% declines
2. Estimated sales decline of 2.3% for the next 12 months implies a challenging demand environment
3. Performance over the past three years shows its incremental sales were less profitable as its earnings per share were flat

At $73.80 per share, Etsy trades at 12.9x forward EV/EBITDA. Read our free research report to see why you should think twice about including ETSY in your portfolio.

Kohl's (KSS)

Consensus Price Target: $18.08 (4.5% implied return)

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Why Do We Pass on KSS?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Operating margin of 3.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
3. 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Kohl’s stock price of $17.30 implies a valuation ratio of 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than KSS.

One Stock to Buy:

American Express (AXP)

Consensus Price Target: $361.94 (6.7% implied return)

Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE:AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.

Why Are We Backing AXP?

1. Annual revenue growth of 15.5% over the last five years was superb and indicates its market share increased during this cycle
2. Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. ROE punches in at 33%, illustrating management’s expertise in identifying profitable investments

American Express is trading at $339.21 per share, or 18.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 (+1,326% between June 2020 and June 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.