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3 Hated Stocks with Questionable Fundamentals

K Cover Image

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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider.

Kellanova (K)

Consensus Price Target: $83.39 (1% implied return)

With Corn Flakes as its first and most iconic product, Kellanova (NYSE: K) is a packaged foods company that is dominant in the cereal and snack categories.

Why Are We Cautious About K?

  1. Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.9%
  3. Earnings per share have contracted by 1.2% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Kellanova’s stock price of $82.56 implies a valuation ratio of 21x forward P/E. To fully understand why you should be careful with K, check out our full research report (it’s free).

Charter (CHTR)

Consensus Price Target: $411.92 (2.1% implied return)

Operating as Spectrum, Charter (NASDAQ: CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Does CHTR Give Us Pause?

  1. Performance surrounding its internet subscribers has lagged its peers
  2. Sales are projected to be flat over the next 12 months and imply weak demand
  3. Underwhelming 9.6% return on capital reflects management’s difficulties in finding profitable growth opportunities

Charter is trading at $403.29 per share, or 10.5x forward P/E. If you’re considering CHTR for your portfolio, see our FREE research report to learn more.

Lindsay (LNN)

Consensus Price Target: $139 (5% 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 Do We Think Twice About LNN?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Sales are projected to be flat over the next 12 months and imply weak demand
  3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

At $132.36 per share, Lindsay trades at 21.4x forward P/E. Read our free research report to see why you should think twice about including LNN in your portfolio.

Stocks That Overcame Trump’s 2018 Tariffs

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.

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