1 unpopular stock that deserves a second chance and 2 we brush off

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 is one stock where Wall Street's pessimism is creating a buying opportunity and two where the skepticism is well-placed.

Two stocks to sell:

Kohl's (KSS)

Consensus price target: $19.21 (-21% implied return)

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl's (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Why Do We Steer Clear of KSS?

1. Failure to add new stores points to soft demand and a focus on boosting sales at current locations

2. Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience

3. Subpar operating margin of 3.7% constrains its ability to invest in process improvements or effectively respond to new competitive threats

At $24.33 per share, Kohl's trades at 15.5x forward P/E. To fully understand why you should be careful with KSS, check out our full research report (it's free) .

CSX (CSX)

Consensus price target: $53.81 (0.8% implied return)

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ:CSX) is a transportation company specializing in freight rail services.

Why Do We Think CSX Will Underperform?

1. Sales were flat over the last two years, indicating it's failed to expand this cycle

2. Disappointing unit sales over the past two years show it's struggled to increase its sales volumes and had to rely on price increases

3. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 4.4 percentage points

CSX is trading at $53.40 per share, or 22.7x forward P/E. Read our free research report to see why you should think twice about including CSX in your portfolio, it's free .

One stock to buy:

NerdWallet (NRDS)

Consensus price target: $11.50 (1.3% implied return)

Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ:NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.