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3 Unpopular Stocks That Deserve a Second Chance

NWPX 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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here are three stocks poised to prove Wall Street wrong.

Northwest Pipe (NWPX)

Consensus Price Target: $86 (17.5% implied return)

Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe (NASDAQ: NWPX) is a manufacturer of pipeline systems for water infrastructure.

Why Do We Like NWPX?

  1. Annual revenue growth of 13% over the past five years was outstanding, reflecting market share gains this cycle
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 31.4% exceeded its revenue gains over the last two years
  3. Free cash flow margin expanded by 14.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Northwest Pipe’s stock price of $73.20 implies a valuation ratio of 18.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Trane Technologies (TT)

Consensus Price Target: $479.73 (13.4% implied return)

With low-pressure heating systems as its first product, Trane (NYSE: TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.

Why Do We Love TT?

  1. Market share has increased this cycle as its 11.4% annual revenue growth over the last five years was exceptional
  2. Share repurchases over the last two years enabled its annual earnings per share growth of 20.2% to outpace its revenue gains
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities

Trane Technologies is trading at $423.20 per share, or 29.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Pathward Financial (CASH)

Consensus Price Target: $103.50 (15.3% implied return)

Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ: CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.

Why Is CASH a Top Pick?

  1. 13.9% annual net interest income growth over the last five years surpassed the sector average as its loans resonated with borrowers
  2. Differentiated product suite results in a Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 7.2%
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 25% exceeded its revenue gains over the last five years

At $89.80 per share, Pathward Financial trades at 2.1x 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 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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