1 Unpopular Stock That Deserves Some Love and 2 We Brush Off

LYV Cover Image

When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as 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 you should be greedy instead of fearful and two where the skepticism is well-placed.

Two Stocks to Sell:

Scorpio Tankers (STNG)

Consensus Price Target: $65.11 (12.7% implied return)

Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.

Why Do We Think Twice About STNG?

  1. Annual sales declines of 1.5% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Number of total vessels has disappointed over the past two years, indicating weak demand for its offerings
  3. Earnings per share have dipped by 41.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term

At $57.75 per share, Scorpio Tankers trades at 9.4x forward P/E. To fully understand why you should be careful with STNG, check out our full research report (it’s free).

Essent Group (ESNT)

Consensus Price Target: $66.25 (2.4% implied return)

Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE: ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%.

Why Are We Cautious About ESNT?

  1. Sluggish 3.6% annualized growth in net premiums earned over the last five years indicates the firm trailed its insurance peers
  2. Day-to-day expenses have swelled relative to revenue over the last two years as its pre-tax profit margin fell by 12.5 percentage points
  3. Performance over the past two years shows its incremental sales were less profitable, as its 4.9% annual earnings per share growth trailed its revenue gains

Essent Group’s stock price of $64.71 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why ESNT doesn’t pass our bar.

One Stock to Watch:

Live Nation (LYV)

Consensus Price Target: $173.80 (5.3% implied return)

Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.

Why Does LYV Catch Our Eye?

  1. Annual revenue growth of 24% over the last five years was superb and indicates its market share is rising
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 26% over the last five years outstripped its revenue performance
  3. Returns on capital are growing as management capitalizes on its market opportunities

Live Nation is trading at $165.01 per share, or 50.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 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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