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1 of Wall Street’s Favorite Stock to Target This Week and 2 to Keep Off Your Radar

OXM Cover Image

The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where analysts may be overlooking some important risks.

Two Stocks to Sell:

Oxford Industries (OXM)

Consensus Price Target: $47.75 (17.2% implied return)

The parent company of Tommy Bahama, Oxford Industries (NYSE: OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.

Why Do We Think OXM Will Underperform?

  1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
  2. Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
  3. Waning returns on capital imply its previous profit engines are losing steam

Oxford Industries’s stock price of $40.73 implies a valuation ratio of 9x forward P/E. If you’re considering OXM for your portfolio, see our FREE research report to learn more.

HNI (HNI)

Consensus Price Target: $64 (36.5% implied return)

With roots dating back to 1944 and a significant acquisition of Kimball International in 2023, HNI (NYSE: HNI) manufactures and sells office furniture systems, seating, and storage solutions, as well as residential fireplaces and heating products.

Why Does HNI Worry Us?

  1. Sales trends were unexciting over the last five years as its 2.7% annual growth was below the typical business services company
  2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.3% annually
  3. Free cash flow margin shrank by 3.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $46.88 per share, HNI trades at 13.2x forward P/E. Dive into our free research report to see why there are better opportunities than HNI.

One Stock to Watch:

Trustmark (TRMK)

Consensus Price Target: $41.50 (22.5% implied return)

Tracing its roots back to 1889 in Mississippi, Trustmark (NASDAQ: TRMK) is a financial services organization providing banking, wealth management, insurance, and mortgage services across five southeastern states.

Why Are We Positive On TRMK?

  1. 9.2% annual net interest income growth over the last four years was better than the sector average, highlighting the value of its loans
  2. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 9.5% annually
  3. Annual tangible book value per share growth of 20.2% over the past two years was outstanding, reflecting strong capital accumulation this cycle

Trustmark is trading at $33.88 per share, or 1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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