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.

Accurately determining a company’s long-term prospects isn’t easy, especially when sentiment is weak. That’s where StockStory comes in - to help you find attractive investment candidates backed by unbiased research. 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:

Lincoln Financial Group (LNC)

Consensus Price Target: $41.27 (-3.5% implied return)

Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE: LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.

Why Do We Avoid LNC?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Insurance offerings faced market headwinds this cycle, reflected in stagnant net premiums earned over the last two years
3. Book value per share tumbled by 15.9% annually over the last five years, showing insurance sector trends are working against its favor during this cycle

Lincoln Financial Group’s stock price of $42.77 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than LNC.

Seacoast Banking (SBCF)

Consensus Price Target: $30.88 (-0.3% implied return)

Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.

Why Is SBCF Not Exciting?

1. Sales trends were unexciting over the last two years as its 1% annual growth was below the typical banking company
2. 2.8% annual tangible book value per share growth over the last five years was slower than its banking peers
3. Projected tangible book value per share decline of 7% for the next 12 months points to tough credit quality challenges ahead

Seacoast Banking is trading at $30.97 per share, or 1.1x forward P/B. To fully understand why you should be careful with SBCF, check out our full research report (it’s free).

One Stock to Watch:

ITT (ITT)

Consensus Price Target: $184.42 (6.8% implied return)

Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE: ITT) provides motion and fluid handling equipment for various industries

Why Are We Positive On ITT?

1. Highly efficient business model is illustrated by its impressive 16.4% operating margin, and its rise over the last five years was fueled by some leverage on its fixed costs
2. Free cash flow margin increased by 15.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $172.63 per share, ITT trades at 25.5x forward P/E. 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

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% 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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