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 are two stocks where you should be greedy instead of fearful and one where the outlook is warranted.

One Industrials Stock to Sell:

Stanley Black & Decker (SWK)

Consensus Price Target: $87.51 (4% implied return)

With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE: SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.

Why Do We Steer Clear of SWK?

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. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 9.6% annually
3. Free cash flow margin dropped by 5.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $84.17 per share, Stanley Black & Decker trades at 16.4x forward P/E. Read our free research report to see why you should think twice about including SWK in your portfolio.

Two Industrials Stocks to Watch:

Comfort Systems (FIX)

Consensus Price Target: $1,150 (2.3% implied return)

Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.

Why Do We Love FIX?

1. Backlog has averaged 33.6% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
2. Share repurchases over the last two years enabled its annual earnings per share growth of 74.2% to outpace its revenue gains
3. Returns on capital are climbing as management makes more lucrative bets

Comfort Systems’s stock price of $1,125 implies a valuation ratio of 36.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Installed Building Products (IBP)

Consensus Price Target: $258.77 (-16.3% implied return)

Founded in 1977, Installed Building Products (NYSE: IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.

Why Does IBP Stand Out?

1. Annual revenue growth of 13% over the past five years was outstanding, reflecting market share gains this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.4% exceeded its revenue gains over the last five years
3. Industry-leading 21.5% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities

Installed Building Products is trading at $309 per share, or 29.1x forward P/E. 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

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.