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2 Unpopular Stocks That Deserve a Second Chance and 1 We Question

HUBB 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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are two stocks poised to prove Wall Street wrong and one where the outlook is warranted.

One Stock to Sell:

Community Bank (CBU)

Consensus Price Target: $67.17 (6.6% implied return)

Tracing its roots back to 1866 in upstate New York, Community Financial System (NYSE: CBU) is a financial holding company that provides banking, employee benefits, wealth management, and insurance services to retail, commercial, and municipal customers.

Why Are We Wary of CBU?

  1. Net interest income trends were unexciting over the last five years as its 6.6% annual growth was below the typical banking firm
  2. Annual earnings per share growth of 4.8% underperformed its revenue over the last five years, showing its incremental sales were less profitable
  3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 3% annually over the last five years

Community Bank is trading at $63.00 per share, or 1.5x forward P/B. To fully understand why you should be careful with CBU, check out our full research report (it’s free).

Two Stocks to Buy:

Hubbell (HUBB)

Consensus Price Target: $535.77 (-0.8% implied return)

A respected player in the electrical segment, Hubbell (NYSE: HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Why Is HUBB a Top Pick?

  1. 9.7% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
  2. Highly efficient business model is illustrated by its impressive 17.6% operating margin, and its profits increased over the last five years as it scaled
  3. Share repurchases over the last five years enabled its annual earnings per share growth of 19.2% to outpace its revenue gains

Hubbell’s stock price of $540.10 implies a valuation ratio of 27.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Wabtec (WAB)

Consensus Price Target: $290.83 (8.1% implied return)

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.

Why Is WAB a Good Business?

  1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
  2. Share repurchases over the last two years enabled its annual earnings per share growth of 23% to outpace its revenue gains
  3. Robust free cash flow margin of 12.6% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

At $268.94 per share, Wabtec trades at 25.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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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