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. That said, here is one stock where Wall Street’s pessimism is creating a buying opportunity and two facing legitimate challenges.
Two Stocks to Sell:
Vishay Intertechnology (VSH)
Consensus Price Target: $14 (-4.6% implied return)
Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE: VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Why Do We Think VSH Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.3% annually over the last two years
- Gross margin of 21.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 16 percentage points
At $14.67 per share, Vishay Intertechnology trades at 28.9x forward P/E. If you’re considering VSH for your portfolio, see our FREE research report to learn more.
Trustmark (TRMK)
Consensus Price Target: $44 (7.6% 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 Does TRMK Fall Short?
- Net interest income trends were unexciting over the last five years as its 8.6% annual growth was below the typical banking firm
- Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 1.7 percentage points
- Below-average return on equity indicates management struggled to find compelling investment opportunities
Trustmark’s stock price of $40.88 implies a valuation ratio of 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than TRMK.
One Stock to Buy:
Shopify (SHOP)
Consensus Price Target: $177.02 (9.3% implied return)
Starting with just three people selling snowboards online in 2004, Shopify (NYSE: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Why Should You Buy SHOP?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 30.8% over the last year
- Expected revenue growth of 24.9% for the next year suggests its market share will rise
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Shopify is trading at $161.98 per share, or 16x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
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 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 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.
