1 Unpopular Stock That Should Get More Attention and 2 Facing Headwinds

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. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two where the skepticism is well-placed.

Two Industrials Stocks to Sell:

Simpson (SSD)

Consensus Price Target: $190 (5.2% implied return)

Aiming to build safer and stronger buildings, Simpson (NYSE:SSD) designs and manufactures structural connectors, anchors, and other construction products.

Why Does SSD Fall Short?

1. 2.6% annual revenue growth over the last two years was slower than its industrials peers
2. Free cash flow margin shrank by 10.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Eroding returns on capital suggest its historical profit centers are aging

Simpson’s stock price of $180.64 implies a valuation ratio of 21.3x forward P/E. Read our free research report to see why you should think twice about including SSD in your portfolio.

Johnson Controls (JCI)

Consensus Price Target: $112.30 (5.5% implied return)

Founded after patenting the electric room thermostat, Johnson Controls (NYSE:JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.

Why Does JCI Worry Us?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5% annually
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up

Johnson Controls is trading at $106.48 per share, or 25.4x forward P/E. If you’re considering JCI for your portfolio, see our FREE research report to learn more.

One Industrials Stock to Buy:

Chart (GTLS)

Consensus Price Target: $205.83 (3.6% implied return)

Installing the first bulk Co2 tank for McDonalds’s sodas, Chart (NYSE:GTLS) provides equipment to store and transport gasses.

Why Will GTLS Outperform?

1. Backlog has averaged 31.9% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
2. Earnings per share have massively outperformed its peers over the last two years, increasing by 28% annually
3. Free cash flow margin grew by 9.6 percentage points over the last five years, giving the company more chips to play with

At $198.75 per share, Chart trades at 14.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2024, 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-small-cap company Exlservice (+354% 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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