Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Wall Street's Three Most Hated Stocks


Texas Industries, Ross Stores, and Colgate could be ripe for the contrarian picking.

Today, I'll be taking a look at a few tickers that have outperformed the broader market, while also generating an ample amount of disgust amongst Wall Street analysts.

The table below is sorted by 60-day Relative Strength (RS 60), and also have more "hold" or "sell" ratings than "buys." I also included year-to-date gain as an alternate performance measure.

So, who makes the cut? Who is outperforming, but the strength of underlying is not believed or yet accepted?

From a sector point of view, the homebuilding/construction sector stands out as one in which performance has been stellar, yet not many believe in the rally. Examples of this include Lumber Liquidators Holdings Inc. (LL), Texas Industries, Inc. (TXI), PulteGroup, Inc. (PHM), MDC Holdings, Inc. (MDC), Sherwin-Williams Company (SHW), Toll Brothers Inc. (TOL), and The Ryland Group, Inc. (RYL).

Two large telecom stocks also make the cut, as Verizon Communications Inc. (VZ) and AT&T Inc. (T) have performed well, yet have garnered little love.

Below, I dissect three of the tickers noted above. The charts are year-to-date with a 20-day moving average.

Texas Industries, Inc.
  • Texas Industries is up 41% YTD, yet eight of 10 analysts rate the stock a "hold" or sell."
  • The security has a preponderance of negative sentiment via elevated levels of short interest and put open interest.

Ross Stores, Inc. (ROST)
  • Despite being up 43% YTD, 12 of the 21 analysts who follow maintain a "hold" rating toward the equity.

Colgate-Palmolive Company (CL)
  • It's a solid 15% YTD advance for the consumer products company, on top of the 2.3% dividend yield. No fewer than 15 of 23 analysts rate the stock a "hold," despite the gains.

This article by Chris Prybal was originally published on Schaeffer's Investment Research.

Below, find some more great content from Schaeffer's Investment Research:

Can the Rally Survive the Minefields Ahead?

Will Bonds Be the Next Bubble to Burst?

Are New Highs on the Horizon?

Twitter: @schaeffers
< Previous
  • 1
Next >
No positions in stocks mentioned.
Featured Videos