Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.

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. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.

Flex (FLEX)

Consensus Price Target: $57.86 (-0.5% implied return)

Originally known as Flextronics until its 2016 rebranding, Flex (NASDAQ: FLEX) is a global manufacturing partner that designs, engineers, and builds products for companies across industries from medical devices to solar trackers.

Why Does FLEX Give Us Pause?

1. Annual sales declines of 4.2% for the past two years show its products and services struggled to connect with the market during this cycle
2. Projected sales growth of 2.8% for the next 12 months suggests sluggish demand
3. Low free cash flow margin of 2.7% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Flex is trading at $58.16 per share, or 13.5x forward EV-to-EBITDA. To fully understand why you should be careful with FLEX, check out our full research report (it’s free).

Employers Holdings (EIG)

Consensus Price Target: $46 (7.5% implied return)

With roots in Nevada and a strong concentration in California where 45% of its premiums are generated, Employers Holdings (NYSE: EIG) is a specialty provider of workers' compensation insurance focused on small and select businesses engaged in low-to-medium hazard industries across the United States.

Why Is EIG Risky?

1. Growth in insurance policies was lackluster over the last two years as its 3.4% annual growth underperformed the typical financial institution
2. Forecasted revenue decline of 1.8% for the upcoming 12 months implies demand will fall off a cliff
3. Incremental sales over the last two years were much less profitable as its earnings per share fell by 3.8% annually while its revenue grew

At $42.79 per share, Employers Holdings trades at 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than EIG.

Triumph Financial (TFIN)

Consensus Price Target: $60.50 (2% implied return)

Originally focused on traditional banking before pivoting to serve the transportation sector, Triumph Financial (NASDAQ: TFIN) provides specialized financial services to the trucking industry, including payments processing, factoring, banking, and data intelligence solutions.

Why Does TFIN Fall Short?

1. Muted 6.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
2. Net interest margin shrank by 121 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
3. Earnings per share fell by 19.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

Triumph Financial’s stock price of $59.29 implies a valuation ratio of 1.6x forward P/B. Read our free research report to see why you should think twice about including TFIN in your portfolio.

Stocks We Like More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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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