3 Unpopular Stocks That Deserve a Second Chance

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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. That said, here are three stocks where you should be greedy instead of fearful.

Costco (COST)

Consensus Price Target: $1,077 (7.2% implied return)

Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.

Why Should COST Be on Your Watchlist?

  1. Comparable store sales rose by 6.2% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
  2. Dominant market position is represented by its $286.3 billion in revenue, which compensates for its subpar gross margin
  3. ROIC punches in at 34.7%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets

At $1,005 per share, Costco trades at 47x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

UMB Financial (UMBF)

Consensus Price Target: $147.08 (11.6% implied return)

With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ: UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.

Why Do We Like UMBF?

  1. Market share has increased this cycle as its 21.6% annual net interest income growth over the last five years was exceptional
  2. Net interest margin grew by 75.2 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
  3. Operating profits are forecasted to increase over the next year as it scales and becomes more productive

UMB Financial’s stock price of $131.81 implies a valuation ratio of 1.2x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Berkshire Hathaway (BRK.A)

Consensus Price Target: $758,899 (5.5% implied return)

Led by legendary investor Warren Buffett since 1965, transforming it from a struggling textile manufacturer into a corporate giant, Berkshire Hathaway (NYSE: BRK.A) is a diversified holding company that owns businesses across insurance, railroads, utilities, manufacturing, retail, and services sectors.

Why Do We Watch BRK.A?

  1. Earnings growth has easily exceeded the peer group average over the last two years as its EPS has compounded at 18.9% annually
  2. Balance sheet strength has increased this cycle as its 15.9% annual tangible book value per share growth over the last five years was exceptional
  3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Berkshire Hathaway is trading at $719,392 per share, or 22.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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