3 Unpopular Stocks We Find Risky
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 facing legitimate challenges and some alternatives worth exploring instead.
Upwork (UPWK)
Consensus Price Target: $9.88 (11% implied return)
Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ:UPWK) is an online platform where businesses and independent professionals connect to get work done.
Why Are We Hesitant About UPWK?
- 6.6% annual revenue growth over the last three years was slower than its consumer internet peers
- Sales are projected to tank by 8.8% over the next 12 months as demand evaporates
Upwork’s stock price of $8.90 implies a valuation ratio of 4.1x forward EV/EBITDA. Read our free research report to see why you should think twice about including UPWK in your portfolio.
Trustmark (TRMK)
Consensus Price Target: $49.25 (5.6% implied return)
Tracing its roots back to 1889 in Mississippi, Trustmark (NASDAQ:TRMK) is a financial services organization providing banking, wealth management, insurance, and mortgage services across five southeastern states.
Why Is TRMK Not Exciting?
- Muted 8.6% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Estimated net interest income growth of 4.1% for the next 12 months implies demand will slow from its five-year trend
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 3.9% annually
Trustmark is trading at $46.62 per share, or 1.2x forward P/B. Check out our free in-depth research report to learn more about why TRMK doesn’t pass our bar.
Peoples Bancorp (PEBO)
Consensus Price Target: $43 (8.3% implied return)
Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ:PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.
Why Do We Steer Clear of PEBO?
- Annual revenue growth of 2.4% over the last two years was below our standards for the banking sector
- Performance over the past five years shows its incremental sales were less profitable, as its 1.1% annual earnings per share growth trailed its revenue gains
- Estimated tangible book value per share growth of 5.5% for the next 12 months implies profitability will slow from its two-year trend
At $39.70 per share, Peoples Bancorp trades at 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than PEBO.
Stocks We Like More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.