1 Unpopular Stock That Should Get More Attention and 2 We Find Risky

Barchart·06/15/2026 04:24:17

When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.

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. Keeping that in mind, here is one stock poised to prove Wall Street wrong and two where the skepticism is well-placed.

Two Stocks to Sell:

Meritage Homes (MTH)

Consensus Price Target: $77.78 (3.8% implied return)

Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE:MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US.

Why Should You Dump MTH?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.8% annually over the last two years
2. Earnings per share have contracted by 2.2% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Meritage Homes’s stock price of $74.94 implies a valuation ratio of 13.8x forward P/E. Dive into our free research report to see why there are better opportunities than MTH.

Assurant (AIZ)

Consensus Price Target: $280.50 (7.4% implied return)

With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE:AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.

Why Are We Hesitant About AIZ?

1. Outsized scale creates growth headwinds as its 5.2% annualized net premiums earned increases over the last five years underperformed other financial institutions
2. Earnings per share lagged its peers over the last two years as they only grew by 13% annually
3. Large asset base makes it harder to grow book value per share quickly, and its annual book value per share growth of 4.2% over the last five years was below our standards for the insurance sector

At $261.07 per share, Assurant trades at 2x forward P/B. Check out our free in-depth research report to learn more about why AIZ doesn’t pass our bar.

One Stock to Watch:

CAVA (CAVA)

Consensus Price Target: $92 (1.1% implied return)

Starting from a single Washington, D.C. location, CAVA (NYSE:CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes.

Why Does CAVA Catch Our Eye?

1. Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
2. Average same-store sales growth of 9.8% over the past two years indicates its restaurants are resonating with diners
3. Notable projected revenue growth of 23.8% for the next 12 months hints at market share gains

CAVA is trading at $90.98 per share, or 144.2x 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

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.