2 Unpopular Stocks That Should Get More Attention and 1 We Ignore
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.
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 two stocks poised to prove Wall Street wrong and one where the outlook is warranted.
Consensus Price Target: $14 (2.6% implied return)
Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ:TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.
Why Do We Pass on TFSL?
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Muted 2.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
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Net interest margin of 1.7% is well below other banks, signaling its loans aren’t very profitable
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Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last two years
TFS Financial’s stock price of $13.64 implies a valuation ratio of 2x forward P/B. Dive into our free research report to see why there are better opportunities than TFSL.
Consensus Price Target: $90 (9.4% implied return)
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Why Are We Positive On GMED?
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Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 58.8% over the past two years
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Earnings per share grew by 21.6% annually over the last five years and trumped its peers
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GMED is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $82.30 per share, Globus Medical trades at 20.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Consensus Price Target: $38.83 (19% implied return)
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE:PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

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