3 Unpopular Stocks We Approach with Caution

EBAY Cover Image

Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

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.

eBay (EBAY)

Consensus Price Target: $94.73 (-0.5% implied return)

Originally known as the first online auction site, eBay (NASDAQ: EBAY) is one of the world’s largest online marketplaces.

Why Are We Hesitant About EBAY?

  1. Active Buyers have stagnated over the last two years, indicating its platform may be struggling to differentiate itself from competitors
  2. Demand has been weak recently as it posted disappointing growth in its average revenue per buyer and struggled to expand its platform
  3. Costs have risen faster than its revenue over the last few years, causing its EBITDA margin to decline by 3.5 percentage points

eBay’s stock price of $95.21 implies a valuation ratio of 13.5x forward EV/EBITDA. Read our free research report to see why you should think twice about including EBAY in your portfolio.

FormFactor (FORM)

Consensus Price Target: $67.88 (-6% implied return)

With customers across the foundry and fabless markets, FormFactor (NASDAQ: FORM) is a US-based provider of test and measurement technologies for semiconductors.

Why Should You Sell FORM?

  1. Muted 2.4% annual revenue growth over the last five years shows its demand lagged behind its semiconductor peers
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 5.5% annually while its revenue grew
  3. Weak free cash flow margin of 3.7% has deteriorated further over the last five years as its investments increased

FormFactor is trading at $72.18 per share, or 50.3x forward P/E. If you’re considering FORM for your portfolio, see our FREE research report to learn more.

Hasbro (HAS)

Consensus Price Target: $93.54 (4.1% implied return)

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Why Do We Think HAS Will Underperform?

  1. Annual revenue declines of 3.4% over the last five years indicate problems with its market positioning
  2. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 3.8% annually
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $89.87 per share, Hasbro trades at 17.6x forward P/E. Dive into our free research report to see why there are better opportunities than HAS.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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.

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