Being a Wall Street analyst is sometimes like being the local meteorologist on TV. If a forecast is horrible, they just make one for the next day and move merrily along. If a stock call fails miserably, analysts generally cut the price target, lower the rating and move on to the next company. At 24/7 Wall St., we realize that companies can hand out misleading commentary or old data, or they have supply issues that can change drastically like this year, but almost weekly we see great companies that Wall Street for one reason or another just does not like. We were very surprised at some of the quality names that get zero love.
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We screened our 24/7 Wall St. research database looking for large-cap stocks that paid big and dependable dividends, have a solid position in their respective sectors and are universally unloved across Wall Street. We found seven top companies, all of which investors should know very well and probably will be surprised that Wall Street takes such a dim view. All seven may be very attractive for long-term growth and income investors.

It is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.

Franklin Resources

This mutual fund powerhouse continues to grow its huge asset base. Franklin Resources Inc. (NYSE: BEN) is among the largest and most global investment managers. At times, 50% of its sales are from outside the United States, an advantage given a maturing U.S. market.

Franklin Resources offers its products and services under the brands of Franklin, Templeton, Franklin Mutual Series, Franklin Bissett, Fiduciary Trust, Darby, Balanced Equity Management, K2, LibertyShares, and Edinburgh Partners.

Shareholders receive a 5.17% dividend. Deutsche Bank has a Wall Street high $29 price target on Franklin Resources stock. The consensus target is $24.4, and shares closed over 4% higher on Tuesday at $23.42.

FS KKR Capital

This very well-known name on Wall Street is offering a solid entry point at current levels. FS KKR Capital Corp. (NASDAQ: FSK) is a BDC specializing in investments in debt securities. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments.

The company also seeks to invest in first lien senior secured loans, second lien secured loans and, to a lesser extent, subordinated or mezzanine loans. In connection with the debt investments, the firm also receives equity interests, such as warrants or options, as additional consideration. It also seeks to purchase minority interests in the form of common or preferred equity in our target companies, either in conjunction with one of the debt investments or through a co-investment with a financial sponsor.
On an opportunistic basis, the fund may invest in corporate bonds and similar debt securities. The fund does not seek to invest in start-up companies, turnaround situations or companies with speculative business plans. It seeks to invest in small and middle-market companies based in the United States. The fund seeks to invest in firms with annual revenue between $10 million and $2.5 billion. It seeks to exit from securities by selling them in a privately negotiated over-the-counter market.
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The company posted stellar results for the most recent quarter and announced a continuation of a huge stock buyback.

Investors receive a 14.09% dividend. Out of the 15 Wall Street firms that follow FS KKR Capital stock, Jefferies is the only one with a Buy rating. Its $25 price target compares with a $22.81 consensus target and Tuesday’s close at $18.63, which was up close to 8% for the day.

Gilead Sciences

This stock is trading at a very reasonable 9.05 times estimated 2022 earnings and has big-time upside potential. Gilead Sciences Inc. (NASDAQ: GILD) is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in the areas of unmet medical need in the United States, Europe and elsewhere.

The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/Eviplera, Stribild and Atripla products for the treatment of human immunodeficiency virus (HIV) infection; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy and Viread for the treatment of liver diseases. It also offers Yescarta, Tecartus, Trodelvy and Zydelig products for the treatment of hematology, oncology and cell therapy patients.

In addition, Gilead provides Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; Ranexa, an oral formulation for the treatment of chronic angina; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections.

The company has collaboration agreements with Arcus Biosciences, Pionyr, Tizona, Tango Therapeutics, Jounce Therapeutics, Galapagos, Janssen, Japan Tobacco, Gadeta, Bristol-Myers Squibb, Merck and Novo Nordisk.

Gilead Sciences stock comes with a 4.69% dividend. Of the 18 analysts that cover the stock, only J.P. Morgan, Mizuho and Royal Bank of Canada have Buy ratings. J.P. Morgan has an $80 target price and the others have a $77 target. The consensus target is $71.07, and Tuesday’s closing print of $65.31.

Kohl’s

The big-box discount retailer has had a rough year but may be offering investors some big upside potential, especially with the holiday shopping season on the way. Kohl’s Corp. (NYSE: KSS) operates as a retail company in the United States. It offers branded apparel, footwear, accessories, beauty and home products through its stores and website.
The company provides its products primarily under the Apt. 9, Croft & Barrow, Jumping Beans, SO, and Sonoma Goods for Life brand names, as well as Food Network, LC Lauren Conrad, Nine West and Simply Vera Vera Wang. As of March 21, 2022, it operated approximately 1,100 Kohl’s stores.
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Recently, several news organizations reported that Oak Street Real Estate Capital made an offer to buy $2 billion worth of its stores and lease them back to Kohl’s.

The dividend yield here is 7.68%. Baird is the only Wall Street firm with an Outperform rating. Its $40 target price is well above the $30.71 consensus target. Kohl’s stock closed on Tuesday at $27.55.

New York Community Bancorp

This somewhat off-the-radar company pays a huge dividend and is an attractive idea for investors also looking to own financials now. New York Community Bancorp Inc. (NYSE: NYCB) operates as the bank holding company for New York Community Bank, which provides banking products and services in New York, New Jersey, Ohio, Florida and Arizona.

The company accepts various deposit products, such as interest-bearing checking and money market, savings, non-interest-bearing and individual retirement accounts, as well as certificates of deposit. Its loan products include multifamily loans; commercial real estate loans; specialty finance loans and leases; and commercial and industrial loans; acquisition, development and construction loans; one-to-four family loans; and consumer loans.

The company also offers annuities, life and long-term care insurance products and mutual funds; cash management products; and online, mobile and phone banking services. It primarily serves individuals, small and midsize businesses, and professional associations through a network of 237 community bank branches and 340 ATM locations.

Investors receive a 7.67% dividend. The $11 price target at BofA Securities, which has the only Buy rating on Wall Street, is near the $11.36 consensus target for New York Community Bancorp stock. Tuesday’s closing print was $9.18.

Prudential Financial

This is a top financial services and insurance company, and only one Wall Street firm has a Buy rating on the shares. Prudential Financial Inc. (NYSE: PRU) provides insurance, investment management and other financial products and services in the United States and internationally.

The company offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. It also provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; and group life, long-term and short-term group disability, and group corporate-, bank- and trust-owned life insurance in the United States, primarily to institutional clients for use in connection with employee and membership benefits plans. It also sells accidental death and dismemberment, and other supplemental health solutions, and it provides plan administration services in connection with its insurance coverages.
In addition, Prudential Financial develops and distributes individual variable and fixed annuity products, principally to the mass affluent and affluent markets, and individual variable, term and universal life insurance products to the mass middle, mass affluent and affluent markets in the United States. Further, it provides third-party life, health, Medicare, property and casualty, and term life products to retail shoppers through its digital and independent agent channels. The company offers its products and services to individual and institutional customers through its proprietary and third-party distribution networks.
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Shareholders receive a 5.38% dividend. Last week, Raymond James initiated coverage with a Strong Buy rating. Its price target is $115, while the consensus target is lower at $102.20. Tuesday’s close for Prudential Financial stock was at $94.24, up close to 6% on the day.

Walgreens Boots Alliance

This huge drugstore chain operator is a safe retail play for investors looking to add health care now. Walgreens Boots Alliance Inc. (NASDAQ: WBA) operates as a pharmacy-led health and beauty retail company. It operates through three segments.

The Retail Pharmacy USA segment sells prescription drugs and an assortment of retail products, including health, wellness, beauty, personal care, consumable, and general merchandise products through its retail drugstores. It also provides specialty pharmacy services and mail services; this segment operates nearly 10,000 retail stores under the Walgreens and Duane Reade brands in the United States; and six specialty pharmacies.

The Retail Pharmacy International segment sells prescription drugs and health and wellness, beauty, personal care and other consumer products through its pharmacy-led health and beauty stores and optical practices, as well as online and an integrated mobile application. This segment operated 4,428 retail stores under the Boots, Benavides and Ahumada in the United Kingdom, Thailand, Norway, the Netherlands, Mexico and elsewhere, and 550 optical practices, including 165 on a franchise basis.

The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home health care supplies and equipment, as well as provides related services to pharmacies and other health care providers.

Walgreens Boots Alliance stock investors receive a 5.92% dividend. Not one firm on Wall Street has a Buy rating on the drugstore giant. The Barclays rating is Equal Weight, with a $45 price target. The consensus target is $40.96. The shares closed 3% higher on Tuesday at $33.39.

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For a variety of reasons, despite their respective strength in the sectors they reside in, Wall Street does not like these seven top stocks and has not for some time. While some would say these all are value traps, the fact is the bear market has driven them to levels where the risk factor for investors with a long-term outlook is negligible, while the upside and the total return potential could be big.

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