3 Unpopular Stocks We Find Risky

Barchart·06/19/2026 04:44:29

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 are three stocks facing legitimate challenges and some alternatives worth exploring instead.

Allegro MicroSystems (ALGM)

Consensus Price Target: $54.42 (-8.2% implied return)

The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.

Why Does ALGM Give Us Pause?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 7.9% annually over the last two years
2. Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
3. Earnings per share have dipped by 15.8% annually over the past five years, which is concerning because stock prices follow EPS over the long term

Allegro MicroSystems is trading at $59.28 per share, or 55.1x forward P/E. To fully understand why you should be careful with ALGM, check out our full research report (it’s free).

Lindsay (LNN)

Consensus Price Target: $124 (4.2% implied return)

A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.

Why Are We Hesitant About LNN?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Earnings per share have contracted by 6.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Waning returns on capital imply its previous profit engines are losing steam

At $118.96 per share, Lindsay trades at 19x forward P/E. Read our free research report to see why you should think twice about including LNN in your portfolio.

Provident Financial Services (PFS)

Consensus Price Target: $25 (10.1% implied return)

Founded in 1839 and serving communities across New Jersey, Pennsylvania, and New York, Provident Financial Services (NYSE:PFS) operates a regional bank providing commercial, residential, and consumer lending alongside wealth management and insurance services.

Why Does PFS Fall Short?

1. Net interest margin of 3.4% reflects its high servicing and capital costs
2. Annual earnings per share growth of 5.2% underperformed its revenue over the last five years, showing its incremental sales were less profitable
3. Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 1% annually over the last two years

Provident Financial Services’s stock price of $22.71 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than PFS.

Stocks We Like More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.

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