Is Wall Street’s Trash Our Treasure? 5 Outcasts Yielding Up To 18.3%

Let’s capitalize on analyst incompetence—and bank yields up to 18.3%, with upside to boot!

Analysts give specific price targets to stocks like they are scripture. In reality, they don’t even know if the thing is going to move up or down.

And it gets uglier. A 2024 Yale School of Management study found that analysts systematically delay downgrading stocks after bad news—to curry favor with the companies they cover.

When Wall Street’s collective price target sits below the stock’s current price, that’s not a signal to sell. That’s a signal that full pessimism is baked in! All it takes is one decent earnings report and the stock gaps higher while the research machine scrambles to reload.

Today we’ll review five hated dividend payers with yields of 6.7% to 18.3% with the potential to rally when analysts change their tune.

This post originally appeared at Contrarian Outlook.