With partisan pundits across the ideological spectrum throwing pejoratives such as “woke” or “fascist,” it’s time to have a substantive discussion on controversial brands. As investors, we shouldn’t let memes and labels define how we conduct business. Rather, we should conduct a fair assessment of so-called controversial stocks. Often, contrarian investing yields big profits from unexpected places.

To be sure, you don’t want to jump on board unpopular stocks merely because they vex certain segments of the public. Sometimes, business enterprises deserve the flack they get. The good ones will receive the lesson the free market provides and the correct course. However, selecting risky stocks might only be so based on perceptions, not on reality. For this list of controversial brands, we’re going to look at enterprises that caused a stir to the left and the right. Underneath the uproar, you might find these controversial stocks quite viable in the long run.

Anheuser-Busch (BUD)

We can’t talk about controversial brands without mentioning brewery giant Anheuser-Busch (NYSE:BUD). To quickly recap the situation, Anheuser-Busch’s key brand Bud Light entered a partnership with social media start Dylan Mulvaney. For those unfamiliar, Mulvaney generated much attention on TikTok by documenting her gender transition journey. Not surprisingly, many conservative pundits voiced displeasure.

Listen, when it comes to controversial stocks, it might seem like Anheuser-Busch might be the worst offender. What’s particularly problematic is that according to The Washington Post, Republican voters tend to prefer Bud Light and other light beer brands over their liberal counterparts.

However, it’s also fair to consider the bigger picture. For instance, Equifax (NYSE:EFX) caused outrage a few years ago because of its data breach compromising the identities of millions of Americans. Yet we got over that. I’m almost certain consumers will get over Bud Light’s partnership with Mulvaney. For the record, analysts peg BUD as a consensus moderate buy. Their average price target comes out to $72, implying 10% upside potential.

Exxon Mobil (XOM)

As one of the world’s biggest oil and natural gas players, Exxon Mobil (NYSE:XOM) by virtue of its business represents a key member of controversial brands. Further, as society embraces issues such as green energy and sustainability – particularly millennials and Generation Z – it’s becoming less and less tenable to brazenly support hydrocarbons. Not surprisingly, Exxon caught much flack over the years for various ills, making XOM one of the most unpopular stocks.

Notably, the company dedicates a large section of its website to address the scandal over the #ExxonKnew movement. To defend its reputation, Exxon claims that the movement represents an orchestrated campaign that seeks to delegitimize the oil giant. It states that these activists distort Exxon’s position on climate change and related research to the public.

Whatever your opinions about big oil corporations, the harsh scientific reality may be that hydrocarbons will stay relevant for decades to come. As the Brookings Institution noted, societies find it difficult to quit fossil fuels because they command substantial energy density.

For fans of contrarian investing, analysts peg XOM as a moderate buy. Their price target stands at $129.50, implying nearly 12% upside potential. Thus, being one of the controversial stocks for left-leaning advocates didn’t hurt XOM.

Nike (NKE)

While Nike (NYSE:NKE) certainly doesn’t rank among the unpopular stocks, it would be disingenuous to say that it never generates scandals. Indeed, for various reasons, Nike garners a not-completely-unjustified reputation as one of the most controversial brands. For example, the specter of sweatshops and forced labor long dogged Nike and similar apparel companies. Of course, Nike really caught conservative ire with its support of former NFL quarterback Colin Kaepernick.

Again, I don’t want to dive into too many details but let’s provide a brief background. In an effort to protest police brutality against people of color, Kaepernick kneeled during the playing of the national anthem. Naturally, the raw visuals sparked considerable outrage among millions of Americans, dividing the nation along sharp ideological lines. Nike continued to support Kaepernick through a video advertisement. However, Nike went woke and it did not go broke – not even close. Over the past five years, NKE despite a sharp hit in 2022 remains up over 80%.

Currently, analysts peg NKE as a consensus moderate buy. Their average price target lands at $140.72, implying 12% upside potential.

Wendy’s (WEN)

A holding company representing the namesake fast-food chain, Wendy’s (NASDAQ:WEN) usually generates attention among consumers for offering an alternative to more popular fast-food choices. However, it became one of the controversial brands in recent years, particularly among those on the left. For instance, the company came under fire when one of its franchisees donated to former President Donald Trump’s reelection campaign.

In response, Wendy’s stated following the public uproar that it will make a $500,000 donation to social justice organizations. More recently, the company caught flack for alleged abuses of farm workers. Further, protestors called for the company to join the Fair Food Program, a partnership among farmers, farmworkers, and retail food companies to ensure humane wages and working conditions.

Although WEN surprisingly ranks among the controversial stocks, those interested in contrarian investing may want to consider the numbers before making a decision. In particular, Wendy’s posted revenue of nearly $2.1 billion last year, up over 10% from the year prior. Currently, analysts peg WEN as a consensus hold. However, their average price target comes out to $25.04, implying over 10% upside potential.

Mondelez (MDLZ)

A multinational confectionary, food, snacks, and beverage company, Mondelez (NASDAQ:MDLZ) is a childhood favorite. Certainly, you wouldn’t expect the makers of Oreo cookies to rank among controversial brands. However, Mondelez suddenly became one of the most unpopular stocks as far as conservatives were concerned.

Last year, many critics on the right fumed over an Oreo ad featuring a young Chinese-American man who described his coming out process to his parents. As well, Oreo previously celebrated LGBTQ+ History Month with limited-edition rainbow cookies. Naturally, right-wing critics have blasted Mondelez for going woke although frankly, the charge isn’t sticking.

In the past five years, MDLZ gained 79% of its equity value. On a financial note, the company enjoys a solid sales trend, leveraging a three-year revenue growth rate of 8.6%. This stat ranks better than 61.61% of companies listed in the consumer packaged goods industry. As well, the enterprise features consistent profitability.

For those interested in contrarian investing, MDLZ ranks as one of the better controversial stocks. Presently, analysts peg MDLZ as a consensus strong buy.

Ammo (POWW)

Inherently, when discussing controversial brands that are publicly available to retail investors, the sport shooting and hunting industries immediately rise to the forefront. To be sure, the nation requires vigorous debate on the topic. Recently, we have seen too many lives being senselessly erased.

Almost invariably, companies like ammunition manufacturer Ammo (NASDAQ:POWW) court controversy. At the same time, we also must explore the other side of the issue. Basically, the underlying controversial industry directly hires tens of thousands of workers. Additionally, the sector boomed during the Covid-19 pandemic, keeping food on the table for countless families.

In addition, before we call for the end of an industry, we must consider the workers employed via the broader supply chain. For Ammo specifically, the company benefits from a strong balance sheet and even stronger operational growth. Priced just under $2, POWW ranks as one of the risky stocks to consider, let’s be clear about that. At the same time, analysts peg POWW as a consensus moderate buy. Also, their average price target stands at $3, implying over 52% upside potential.

Disney (DIS)

What once used to be a top entertainment company has become the symbol of controversial brands. Of course, I’m referring to Disney (NYSE:DIS), which finds itself locked in a heated battle with Florida Governor Ron DeSantis. Essentially, DeSantis took issue with Disney voicing displeasure at the state’s Parental Rights in Education bill. In turn, the governor appeared to retaliate by targeting Disney World’s special tax district.

While Disney courts conservative ire for going woke, it’s not exactly endearing to all liberal voters either. For one thing, those on the left criticized the Magic Kingdom for not doing enough to support LGBTQ-related issues. Also, the company earlier attracted universal uproar for filming “Mulan” in China’s Xinjiang province. This area attracted calls from human rights activists related to the unlawful detainment of Muslim Uighurs.

Although DIS ranks among the controversial stocks, it might appeal to those interested in contrarian investing. While shares suffered steep losses since late 2021, the company itself generates solid revenue relative to the industry. Plus, with the global economy normalizing from the Covid-19 disaster, Disney enjoys a viable upside trek. Finally, analysts peg DIS as a consensus strong buy. Their average price target lands at $129.17, implying nearly 30% upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.