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 two stocks poised to prove Wall Street wrong and one where the skepticism is well-placed.
One Stock to Sell:
Packaging Corporation of America (PKG)
Consensus Price Target: $259.30 (9.3% implied return)
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.
Why Are We Cautious About PKG?
- Underwhelming unit sales over the past two years imply it may need to invest in improvements to get back on track
- Earnings per share have dipped by 1.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
Packaging Corporation of America is trading at $237.21 per share, or 20.3x forward P/E. Read our free research report to see why you should think twice about including PKG in your portfolio.
Two Stocks to Buy:
ServiceNow (NOW)
Consensus Price Target: $144.99 (7% implied return)
Built on a single code base that processes more than 80 billion workflows and 6.5 trillion transactions annually, ServiceNow (NYSE: NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
What Makes NOW Stand Out?
- Ability to secure long-term commitments with customers is evident in its 22.3% ARR growth over the last year
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
ServiceNow’s stock price of $135.57 implies a valuation ratio of 8.1x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.
Kinsale Capital Group (KNSL)
Consensus Price Target: $354.78 (5.8% implied return)
Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE: KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.
Why Is KNSL a Good Business?
- Net premiums earned expanded by 16.3% annually over the last two years, demonstrating exceptional market penetration this cycle
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive 28.6% annual book value per share growth over the last two years indicates it’s building equity value this cycle
At $335.29 per share, Kinsale Capital Group trades at 3.6x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
