3 Unpopular Stocks We Find Risky

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

NDSN 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.

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 three stocks where the skepticism is well-placed and some better opportunities to consider.

Nordson (NDSN)

Consensus Price Target: $319.13 (7.9% implied return)

Founded in 1954, Nordson Corporation (NASDAQ: NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.

Why Are We Wary of NDSN?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.2%
  3. Waning returns on capital imply its previous profit engines are losing steam

Nordson’s stock price of $295.71 implies a valuation ratio of 25.3x forward P/E. Read our free research report to see why you should think twice about including NDSN in your portfolio.

Advanced Energy (AEIS)

Consensus Price Target: $394.50 (11.4% implied return)

Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ: AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.

Why Does AEIS Worry Us?

  1. Sales trends were unexciting over the last five years as its 5.6% annual growth was below the typical industrials company
  2. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 5.3% annually
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

Advanced Energy is trading at $354.12 per share, or 37.3x forward P/E. If you’re considering AEIS for your portfolio, see our FREE research report to learn more.

Aflac (AFL)

Consensus Price Target: $112.43 (-5.1% implied return)

Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac (NYSE: AFL) provides supplemental health and life insurance policies that pay cash benefits directly to policyholders for expenses not covered by their primary insurance.

Why Do We Pass on AFL?

  1. Insurance policy sales contracted this cycle as net premiums earned decreased by 6.2% annually over the last five years
  2. Estimated book value per share decline of 4.8% for the next 12 months implies a challenging profitability environment
  3. Debt-to-equity ratio of 1.9× shows the firm has taken on excessive debt, leaving little room for error

At $118.53 per share, Aflac trades at 2x forward P/B. To fully understand why you should be careful with AFL, check out our full research report (it’s free).

Stocks We Like 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

Report this content

If you believe this article contains misleading, harmful, or spam content, please let us know.

Report this article

More News

View More

Recent Quotes

View More
Symbol Price Change (%)
AMZN  244.16
+2.46 (1.02%)
AAPL  307.86
+13.48 (4.58%)
AMD  511.95
-28.93 (-5.35%)
BAC  58.48
+0.12 (0.21%)
GOOG  351.50
-6.38 (-1.78%)
META  585.27
-27.64 (-4.51%)
MSFT  391.64
+7.36 (1.92%)
NVDA  193.09
-4.49 (-2.27%)
ORCL  140.22
-2.28 (-1.60%)
TSLA  390.48
-34.82 (-8.19%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.