Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Unpopular Stocks We Steer Clear Of

MDLZ 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 are three stocks facing legitimate challenges and some alternatives worth exploring instead.

Mondelez (MDLZ)

Consensus Price Target: $74.52 (15.5% implied return)

Founded as Nabisco in 1903, Mondelez (NASDAQ: MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.

Why Are We Hesitant About MDLZ?

  1. Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
  2. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.7 percentage points
  3. Free cash flow margin dropped by 2.3 percentage points over the last year, implying the company became more capital intensive as competition picked up

At $64.54 per share, Mondelez trades at 20.2x forward P/E. Check out our free in-depth research report to learn more about why MDLZ doesn’t pass our bar.

Vestis (VSTS)

Consensus Price Target: $6.14 (0.7% implied return)

Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE: VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.

Why Should You Sell VSTS?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
  2. Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 47.5% annually
  3. Free cash flow margin dropped by 6 percentage points over the last four years, implying the company became more capital intensive as competition picked up

Vestis is trading at $6.10 per share, or 7.7x forward P/E. Dive into our free research report to see why there are better opportunities than VSTS.

Advanced Energy (AEIS)

Consensus Price Target: $130.80 (-10.3% implied return)

Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ: AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.

Why Do We Steer Clear of AEIS?

  1. Sales tumbled by 8.8% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Free cash flow margin shrank by 6.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
  3. Waning returns on capital imply its previous profit engines are losing steam

Advanced Energy’s stock price of $145.90 implies a valuation ratio of 28.8x forward P/E. To fully understand why you should be careful with AEIS, check out our full research report (it’s free).

Stocks We Like More

Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 Stocks for this week. 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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