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.

Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. That said, here is one stock poised to prove Wall Street wrong and two where the outlook is warranted.

Two Stocks to Sell:

General Dynamics (GD)

Consensus Price Target: $333.41 (3.9% implied return)

Creator of the famous M1 Abrahms tank, General Dynamics (NYSE: GD) develops aerospace, marine systems, combat systems, and information technology products.

Why Does GD Worry Us?

1. Average backlog growth of 2.1% over the past two years was mediocre and suggests fewer customers signed long-term contracts
2. Estimated sales growth of 3.5% for the next 12 months implies demand will slow from its two-year trend
3. Earnings per share lagged its peers over the last five years as they only grew by 5.8% annually

At $321 per share, General Dynamics trades at 20.9x forward P/E. If you’re considering GD for your portfolio, see our FREE research report to learn more.

Steelcase (SCS)

Consensus Price Target: $16.25 (-4.4% implied return)

Founded in 1912 when metal office furniture was replacing wooden alternatives, Steelcase (NYSE: SCS) is a global office furniture manufacturer that designs and produces workplace solutions including desks, chairs, architectural products, and services.

Why Do We Think SCS Will Underperform?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Low free cash flow margin of 1.3% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. ROIC of 7.1% reflects management’s challenges in identifying attractive investment opportunities

Steelcase’s stock price of $17 implies a valuation ratio of 15.3x forward P/E. Read our free research report to see why you should think twice about including SCS in your portfolio.

One Stock to Watch:

Trustmark (TRMK)

Consensus Price Target: $43.60 (8.8% 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 Could TRMK Be a Winner?

1. Decent 8.4% annual net interest income growth over the last five years beat most of its peers, showing borrowers find value in its loans
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 10.2% over the last two years outstripped its revenue performance
3. Impressive 21.8% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle

Trustmark is trading at $40.08 per share, or 1.1x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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-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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