2 Unpopular Stocks that Deserve Some Love and 1 to Turn Down
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 two stocks where Wall Street's pessimism is creating a buying opportunity and one where the skepticism is well-placed.
Consensus Price Target: $58.09 (11.9% implied return)
Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE:HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.
Why Does HXL Worry Us?
Sales tumbled by 3.8% annually over the last five years, showing market trends are working against its favor during this cycle
Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
8 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position
At $51.89 per share, Hexcel trades at 22.8x forward P/E. Read our free research report to see why you should think twice about including HXL in your portfolio, it's free.
Consensus Price Target: $74.53 (-8% implied return)
Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system.
Why Do We Watch RBLX?
Daily Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
Brand halo makes it a customer acquisition machine that onboards new users at scale without spending much money
Excellent EBITDA margin of 20.5% highlights the efficiency of its business model
Roblox is trading at $81 per share, or 47.9x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it's free.
Consensus Price Target: $300.30 (-3.3% implied return)
Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.
Why Does MEDP Stand Out?
Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 17.8% over the past two years
Share repurchases over the last five years enabled its annual earnings per share growth of 35.1% to outpace its revenue gains
Returns on capital are climbing as management makes more lucrative bets
Medpace's stock price of $310.55 implies a valuation ratio of 23.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free.
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
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Total liabilities at March 31, 2025 were $21.7 million, a decrease of $24.6 million compared to year-end 2024, driven primarily by the previously-mentioned non-cash changes in the fair value of the Company's warrant liability. As of March 31, 2025, the Company had shareholders' equity totaling $220.8 million. First Quarter 2025 Operational Highlights Quantum Photonic Chip Foundry Update: During the quarter, QCi completed construction of its Quantum Photonic Chip Foundry in Tempe, Arizona, achieving a key milestone in scaling its U.S.-based TFLN manufacturing services. The Company is now establishing its process design kit (PDK) and filling customer orders. To date, the Company has received five initial orders for its foundry services. Advancing Quantum Machine Adoption: On January 15, 2025, QCi announced a collaboration with Sanders Tri-Institutional Therapeutics Discovery Institute (Sanders TDI), a non-profit drug discovery institute comprising Memorial Sloan Kettering Cancer Center, The Rockefeller University, and Weill Cornell Medicine. Through this partnership, Sanders TDI will leverage cloud-based access to QCi's Dirac-3 quantum optimization machine to support computational chemistry and biomolecular modeling research. This collaboration highlights growing adoption of QCi's quantum systems in real-world biomedical applications. Board Appointment Strengthens Strategic Leadership: On March 26, 2025, QCi appointed Eric Schwartz to its Board of Directors. Mr. Schwartz brings over 20 years of experience in corporate finance, mergers and acquisitions, and corporate strategy, with a strong track record guiding companies through commercialization and manufacturing scale-up. His expertise will support QCi's growth initiatives as the Company advances its TFLN chip foundry and drives market adoption of its quantum machines. Strengthening Sales & Market Presence: The Company continued to expand its commercial and government engagement, participating in numerous trade shows and conferences during the quarter to showcase its quantum optimization and photonic chip solutions to prospective customers and partners. Advancing Strategic Partnerships with NASA: Subsequent to the quarter on April 30, 2025, QCi was awarded a subcontract valued at approximately $406,000 through Analytical Mechanics Associates (AMA) to support NASA's Langley Research Center. Under the project, QCi will use its Dirac-3 quantum computer to develop a quantum-based technique for removing sunlight noise from space-based LIDAR data, an obstacle that has historically limited NASA's ability to conduct reliable daytime Earth observation. This project builds on QCi's prior work with NASA. 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Earnings Conference Call The Company will host its first quarter conference call on Thursday, May 15, 2025, at 4:30 p.m. To access the live webcast of the conference call, visit the QCi Investor Relations page at Investors may also access the webcast via the following link: To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use access code: 832763. A replay of the teleconference will be available until May 22, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52325. About Quantum Computing Inc. Quantum Computing Inc. (Nasdaq: QUBT) is an innovative, integrated photonics and quantum optics technology company that provides accessible and affordable quantum machines to the world today. QCi's products are designed to operate at room temperature and low power at an affordable cost. The Company's portfolio of core technologies and products offer unique capabilities in the areas of high-performance computing, artificial intelligence, and cybersecurity, as well as remote sensing applications. Company Contact:Rosalyn Christian/John NesbettIMS Investor Relationsinvestors@ Forward-Looking Statements This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, generally identified by terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," "aim to," or variations of these or similar words, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief or current expectations of QCi and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including the timing of orders and revenue, and the outcome of ongoing collaborations and demonstration projects with certain U.S. government agencies, academic institutions and commercial customers, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, QCi undertakes no obligation to update or revise forward-looking statements to reflect changed conditions. IMPORTANT NOTICE TO USERS (summary only, click here for full text of notice): All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our Forms 10-Q and 10-K. QUANTUM COMPUTING INC. Consolidated Balance Sheets (in thousands, except par value data)March 31, December 31,2025 2024Assets Current assets: Cash and cash equivalents$ 166,429 $ 78,945 Accounts receivable, net 2027 Inventory 13118 Prepaid expenses and other current assets 660161Total current assets 167,24079,151Property and equipment, net 9,9768,212Operating lease right-of-use assets 1,4191,522Intangible assets, net 8,1968,972Goodwill 55,57355,573Other non-current assets 129129Total assets$ 242,533 $ 153,559 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$ 2,022 $ 1,372 Accrued expenses 6472,134 Deferred revenue 8379 Other current liabilities 990974Total current liabilities 3,7424,559Derivative liability 16,90240,532Operating lease liabilities 1,0621,181Total liabilities 21,70646,272Stockholders' equity: Common stock, $0.0001 par value, 250,000 thousand shares authorized; 137,322 thousand and 129,012 thousand shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 1413 Additional paid-in capital 404,313307,756 Accumulated deficit (183,500)(200,482)Total stockholders' equity 220,827107,287Total liabilities and stockholders' equity$ 242,533 $ 153,559 QUANTUM COMPUTING INC. Consolidated Statements of Operations (in thousands, except per share data)Three Months EndedMarch 31,2025 2024Total revenue$ 39 $ 27Cost of revenue 2616Gross profit 1311Operating expenses Research and development 2,9852,220Sales and marketing 672451General and administrative 4,6423,659Total operating expenses 8,2996,330Loss from operations (8,286)(6,319)Non-operating income (expense) Interest and other income 1,69638Interest expense, net (58)(155)Change in fair value of warrant liabilities 23,630-Income (loss) before income tax provision 16,982(6,436)Income tax provision --Net income (loss) 16,982(6,436) Net income (loss) attributable to common stockholders$ 16,982 $ (6,436) Earnings (loss) per share: Basic$ 0.13 $ (0.08)Diluted$ 0.11 $ (0.08)Weighted average shares used in computing net earnings (loss) per common share: Basic 135,21781,934Diluted 153,00681,934 View original content to download multimedia: SOURCE Quantum Computing Inc. 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