1 Unpopular Stock That Deserves Some Love and 2 That Underwhelm

September 22, 2025 at 00:32 AM EDT

ADI Cover Image

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.

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 Wall Street’s pessimism is creating a buying opportunity and two where the skepticism is well-placed.

Two Stocks to Sell:

Analog Devices (ADI)

Consensus Price Target: $267.47 (9.1% implied return)

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ: ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Why Are We Cautious About ADI?

Customers postponed purchases of its products and services this cycle as its revenue declined by 10.1% annually over the last two years
Efficiency has decreased over the last five years as its operating margin fell by 7 percentage points
ROIC of 6.5% reflects management’s challenges in identifying attractive investment opportunities, and its decreasing returns suggest its historical profit centers are aging

Analog Devices is trading at $245.27 per share, or 29x forward P/E. Check out our free in-depth research report to learn more about why ADI doesn’t pass our bar.

Krispy Kreme (DNUT)

Consensus Price Target: $4.03 (17.6% implied return)

Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ: DNUT) is one of the most beloved and well-known fast-food chains in the world.

Why Do We Pass on DNUT?

Earnings per share have dipped by 38.7% annually over the past three years, which is concerning because stock prices follow EPS over the long term
Long-term business health is up for debate as its cash burn has increased over the last year
Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $3.43 per share, Krispy Kreme trades at 3.9x forward EV-to-EBITDA. To fully understand why you should be careful with DNUT, check out our full research report (it’s free).

One Stock to Watch:

Dick's (DKS)

Consensus Price Target: $240.81 (8.3% implied return)

Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.

Why Does DKS Stand Out?

Comparable store sales rose by 4.3% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
Exciting sales outlook for the upcoming 12 months calls for 54.9% growth, an acceleration from its six-year trend
ROIC punches in at 24.3%, illustrating management’s expertise in identifying profitable investments

Dick’s stock price of $222.29 implies a valuation ratio of 14.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even 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 Exlservice (+354% 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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