2 Unpopular Stocks That Deserve a Second Chance and 1 We Ignore

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. That said, here are two stocks where you should be greedy instead of fearful and one where the outlook is warranted.

One Stock to Sell:

Avantor (AVTR)

Consensus Price Target: $14.56 (1.2% implied return)

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE:AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Why Do We Think AVTR Will Underperform?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Inability to adjust its cost structure while its revenue declined over the last five years led to a 5.9 percentage point drop in the company’s adjusted operating margin
3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

Avantor’s stock price of $14.39 implies a valuation ratio of 16.5x forward P/E. Dive into our free research report to see why there are better opportunities than AVTR.

Two Stocks to Watch:

Restaurant Brands (QSR)

Consensus Price Target: $85.65 (6% implied return)

Formed through a strategic merger, Restaurant Brands International (NYSE:QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.

Why Could QSR Be a Winner?

1. New restaurant openings and solid same-store sales performance have boosted its top-line growth
2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 25.2%, and its operating leverage amplified its profits over the last year
3. QSR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute

Restaurant Brands is trading at $80.83 per share, or 18.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Hims & Hers Health (HIMS)

Consensus Price Target: $30.85 (-8.6% implied return)

Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.

Why Are We Positive on HIMS?

1. Customer trends over the past two years show it’s maintaining a steady flow of new contracts that can potentially increase in value over time
2. Free cash flow margin grew by 15.9 percentage points over the last five years, giving the company more chips to play with
3. Returns on capital are increasing as management’s prior bets are starting to bear fruit

At $33.77 per share, Hims & Hers Health trades at 21.3x forward P/E. Is now the right time to buy? See for yourself 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 (+1,460% 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.