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1 Unpopular Stock That Deserves a Second Chance and 2 We Question

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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. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the outlook is warranted.

Two Stocks to Sell:

Funko (FNKO)

Consensus Price Target: $4.50 (15.4% implied return)

Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ: FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.

Why Should You Sell FNKO?

  1. Sales trends were unexciting over the last five years as its 6.8% annual growth was below the typical consumer discretionary company
  2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
  3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Funko’s stock price of $3.90 implies a valuation ratio of 5.3x forward EV-to-EBITDA. If you’re considering FNKO for your portfolio, see our FREE research report to learn more.

Western Union (WU)

Consensus Price Target: $9.62 (3.5% implied return)

With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE: WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.

Why Do We Steer Clear of WU?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.9% annually over the last five years
  2. Earnings per share have dipped by 1.3% annually over the past five years, which is concerning because stock prices follow EPS over the long term

At $9.29 per share, Western Union trades at 5.1x forward P/E. Check out our free in-depth research report to learn more about why WU doesn’t pass our bar.

One Stock to Watch:

Altria (MO)

Consensus Price Target: $65.50 (-2.3% implied return)

Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.

Why Does MO Stand Out?

  1. Products command premium prices and result in a best-in-class gross margin of 71.1%
  2. Healthy operating margin of 52.1% shows it’s a well-run company with efficient processes
  3. Robust free cash flow margin of 43.6% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

Altria is trading at $67.08 per share, or 11.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even 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 meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum 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.

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