3 Unpopular Stocks Walking a Fine Line
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 outlook is warranted and some alternatives with better fundamentals.
Repligen (RGEN)
Consensus Price Target: $189.48 (1.4% implied return)
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ:RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Do We Think RGEN Will Underperform?
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 16.2 percentage points
- Earnings per share have contracted by 3.8% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $186.84 per share, Repligen trades at 79.6x forward P/E. Read our free research report to see why you should think twice about including RGEN in your portfolio.
Unum Group (UNM)
Consensus Price Target: $101.85 (9.1% implied return)
Tracing its roots back to 1848 when financial security for workers was virtually non-existent, Unum Group (NYSE:UNM) provides workplace financial protection benefits including disability, life, accident, critical illness, dental and vision insurance primarily through employers.
Why Should You Sell UNM?
- Outsized scale creates growth headwinds as its 3.2% annualized net premiums earned increases over the last five years underperformed other financial institutions
- Pre-tax profit margin declined by 5.9 percentage points over the last two years as its sales cratered
- Earnings per share lagged its peers over the last two years as they only grew by 1.9% annually
Unum Group is trading at $93.37 per share, or 1.3x forward P/B. To fully understand why you should be careful with UNM, check out our full research report (it’s free).
Camden National Corporation (CAC)
Consensus Price Target: $59.60 (4.6% implied return)
Rooted in Maine's coastal communities since 1875, Camden National (NASDAQ:CAC) is a regional bank holding company that provides banking, wealth management, and financial services to consumers and businesses throughout Maine and New Hampshire.
Why Does CAC Fall Short?
- 9.2% annual net interest income growth over the last five years was slower than its banking peers
- Incremental sales over the last five years were less profitable as its 1% annual earnings per share growth lagged its revenue gains
- Capital trends were unexciting over the last five years as its 1.1% annual tangible book value per share growth was below the typical banking firm
Camden National Corporation’s stock price of $56.98 implies a valuation ratio of 1.3x forward P/B. Dive into our free research report to see why there are better opportunities than CAC.
Stocks We Like More
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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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.