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.

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 are three stocks where the skepticism is well-placed and some better opportunities to consider.

Hexcel (HXL)

Consensus Price Target: $75.79 (-3.5% implied return)

Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE: HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.

Why Should You Dump HXL?

1. Sales trends were unexciting over the last five years as its 1.2% annual growth was below the typical industrials company
2. Flat earnings per share over the last two years lagged its peers
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $78.54 per share, Hexcel trades at 36.2x forward P/E. Read our free research report to see why you should think twice about including HXL in your portfolio.

Illinois Tool Works (ITW)

Consensus Price Target: $260.72 (5.8% implied return)

Founded by Byron Smith, an investor who held over 100 patents, Illinois Tool Works (NYSE: ITW) manufactures engineered components and specialized equipment for numerous industries.

Why Is ITW Not Exciting?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Projected sales growth of 3.3% for the next 12 months suggests sluggish demand
3. Flat earnings per share over the last two years underperformed the sector average

Illinois Tool Works is trading at $246.46 per share, or 22.6x forward P/E. Dive into our free research report to see why there are better opportunities than ITW.

First Hawaiian Bank (FHB)

Consensus Price Target: $27.33 (8.5% implied return)

Dating back to 1858 as Hawaii's oldest bank with deep roots in the Pacific island communities, First Hawaiian (NASDAQ: FHB) operates a full-service community bank providing deposit accounts, commercial and consumer loans, credit cards, and wealth management services across Hawaii, Guam, and Saipan.

Why Do We Avoid FHB?

1. Muted 3.8% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
2. Earnings per share fell by 1.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Tangible book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle

First Hawaiian Bank’s stock price of $25.19 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why FHB doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

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-micro-cap company Kadant (+351% 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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