Wall Street’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
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. That said, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges.
Two Industrials Stocks to Sell:
Redwire (RDW)
Consensus Price Target: $12.56 (16.6% implied return)
Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure.
Why Do We Avoid RDW?
- Historically negative EPS casts doubt for cautious investors and clouds its long-term earnings prospects
- Free cash flow margin dropped by 14.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Redwire’s stock price of $10.77 implies a valuation ratio of 96.3x forward EV-to-EBITDA. To fully understand why you should be careful with RDW, check out our full research report (it’s free).
General Dynamics (GD)
Consensus Price Target: $388.36 (8.1% implied return)
Creator of the famous M1 Abrahms tank, General Dynamics (NYSE:GD) develops aerospace, marine systems, combat systems, and information technology products.
Why Are We Wary of GD?
- Average backlog growth of 3.4% over the past two years was mediocre and suggests fewer customers signed long-term contracts
- Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 1.8 percentage points
General Dynamics is trading at $359.30 per share, or 22.4x forward P/E. Read our free research report to see why you should think twice about including GD in your portfolio.
One Industrials Stock to Buy:
RBC Bearings (RBC)
Consensus Price Target: $512.67 (3.5% implied return)
With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.
Why Are We Bullish on RBC?
- Impressive 21% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings per share grew by 19.7% annually over the last five years and trumped its peers
- Strong free cash flow margin of 15.6% enables it to reinvest or return capital consistently
At $495.21 per share, RBC Bearings trades at 39.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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 Strong Momentum Stocks for this week. 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.