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1 Unpopular Stock that Should Get More Attention and 2 to Be Wary Of

EWCZ 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.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. That said, here is one stock poised to prove Wall Street wrong and two facing legitimate challenges.

Two Stocks to Sell:

European Wax Center (EWCZ)

Consensus Price Target: $6.71 (4.9% implied return)

Founded by two siblings, European Wax Center (NASDAQ: EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.

Why Do We Think Twice About EWCZ?

  1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
  2. Estimated sales decline of 1.4% for the next 12 months implies a challenging demand environment
  3. Flat earnings per share over the last three years underperformed the sector average

At $6.40 per share, European Wax Center trades at 20.3x forward P/E. To fully understand why you should be careful with EWCZ, check out our full research report (it’s free).

Bank of Hawaii (BOH)

Consensus Price Target: $72.20 (7.4% implied return)

Founded in 1897 as a financial anchor for the newly annexed Hawaiian territory, Bank of Hawaii (NYSE: BOH) is a financial institution providing banking, investment, and insurance services primarily to customers in Hawaii, Guam, and other Pacific Islands.

Why Are We Wary of BOH?

  1. Net interest income stagnated over the last four years and signal the need for new growth strategies
  2. Weak unit economics are reflected in its net interest margin of 2.2%, one of the worst among bank companies
  3. Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 6.8% annually

Bank of Hawaii’s stock price of $67.25 implies a valuation ratio of 1.8x forward P/B. If you’re considering BOH for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

SPX Technologies (SPXC)

Consensus Price Target: $174.50 (8.6% implied return)

SPX Technologies (NYSE: SPXC) is an industrial conglomerate catering to the energy, manufacturing, automotive, and aerospace sectors.

Why Could SPXC Be a Winner?

  1. Annual revenue growth of 13.5% over the last two years was superb and indicates its market share increased during this cycle
  2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  3. Earnings per share have massively outperformed its peers over the last two years, increasing by 25.5% annually

SPX Technologies is trading at $160.61 per share, or 25.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.

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