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 Industrials Stocks to Sell:
Saia (SAIA)
Consensus Price Target: $394.45 (2.5% implied return)
Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions.
Why Are We Hesitant About SAIA?
- Disappointing tons shipped over the past two years indicate demand is soft and that the company may need to revise its strategy
- Weak free cash flow margin of -0.4% has deteriorated further over the last five years as its investments increased
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $384.88 per share, Saia trades at 35.7x forward P/E. To fully understand why you should be careful with SAIA, check out our full research report (it’s free).
CSX (CSX)
Consensus Price Target: $39.85 (-2.1% implied return)
Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ:CSX) is a transportation company specializing in freight rail services.
Why Do We Pass on CSX?
- Flat unit sales over the past two years imply it may need to invest in improvements to get back on track
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 6.5% annually, worse than its revenue
- Free cash flow margin dropped by 18 percentage points over the last five years, implying the company became more capital intensive as competition picked up
CSX is trading at $40.69 per share, or 22.1x forward P/E. Read our free research report to see why you should think twice about including CSX in your portfolio.
One Industrials Stock to Buy:
Woodward (WWD)
Consensus Price Target: $417.75 (10.2% implied return)
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Are We Bullish on WWD?
- Annual revenue growth of 10.9% over the last two years was superb and indicates its market share increased during this cycle
- Operating margin improvement of 4.3 percentage points over the last five years demonstrates its ability to scale efficiently
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 29.4% annually
Woodward’s stock price of $379.20 implies a valuation ratio of 43.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.