1 Unpopular Stock That Deserves Some Love and 2 Facing Headwinds

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GCO Cover Image

Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

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

Two Stocks to Sell:

Genesco (GCO)

Consensus Price Target: $40.33 (5.4% implied return)

Spanning a broad range of styles, brands, and prices, Genesco (NYSE: GCO) sells footwear, apparel, and accessories through multiple brands and banners.

Why Should You Dump GCO?

  1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
  2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
  3. High net-debt-to-EBITDA ratio of 8× could force the company to raise capital on unfavorable terms if market conditions deteriorate

Genesco is trading at $38.25 per share, or 0.2x forward price-to-sales. Check out our free in-depth research report to learn more about why GCO doesn’t pass our bar.

Delta (DAL)

Consensus Price Target: $81.81 (2.3% implied return)

One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE: DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

Why Do We Pass on DAL?

  1. Performance surrounding its revenue passenger miles has lagged its peers
  2. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 1.7 percentage points over the next year
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Delta’s stock price of $80.00 implies a valuation ratio of 14.3x forward P/E. Dive into our free research report to see why there are better opportunities than DAL.

One Stock to Buy:

StoneX (SNEX)

Consensus Price Target: $123 (14.8% implied return)

Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ: SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.

Why Will SNEX Beat the Market?

  1. Annual revenue growth of 44.3% over the last two years was superb and indicates its market share increased during this cycle
  2. Earnings per share have massively outperformed its peers over the last two years, increasing by 29.6% annually
  3. Annual tangible book value per share growth of 16.9% over the last five years was superb and indicates its capital strength increased during this cycle

At $107.18 per share, StoneX trades at 3.1x forward P/E. Is now the time to initiate a position? Find out in our full 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

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