1 Unpopular Stock That Deserves Some Love and 2 We Find Risky

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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.

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 where you should be greedy instead of fearful and two facing legitimate challenges.

Two Stocks to Sell:

The New York Times (NYT)

Consensus Price Target: $66.88 (-3.7% implied return)

Founded in 1851, The New York Times (NYSE: NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.

Why Do We Think NYT Will Underperform?

  1. Number of subscribers has disappointed over the past two years, indicating weak demand for its offerings
  2. Operating margin of 14.2% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

The New York Times is trading at $69.43 per share, or 26.7x forward P/E. Dive into our free research report to see why there are better opportunities than NYT.

DXC (DXC)

Consensus Price Target: $14.50 (-1.1% implied return)

Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE: DXC) is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations.

Why Do We Steer Clear of DXC?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Flat earnings per share over the last five years underperformed the sector average
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $14.66 per share, DXC trades at 4.8x forward P/E. To fully understand why you should be careful with DXC, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

Medpace (MEDP)

Consensus Price Target: $541.92 (-3.5% implied return)

Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ: MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Why Does MEDP Catch Our Eye?

  1. Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 15.1% over the past two years
  2. Market share is on track to rise over the next 12 months as its 18% projected revenue growth implies demand will accelerate from its two-year trend
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 34.2% exceeded its revenue gains over the last five years

Medpace’s stock price of $561.61 implies a valuation ratio of 35.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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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