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

Himax (HIMX)

Consensus Price Target: $8.54 (12% implied return)

Taiwan-based Himax Technologies (NASDAQ: HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.

Why Should You Sell HIMX?

1. Sales tumbled by 6% annually over the last two years, showing market trends are working against its favor during this cycle
2. Forecasted revenue decline of 4.4% for the upcoming 12 months implies demand will fall even further
3. Efficiency has decreased over the last five years as its operating margin fell by 22.9 percentage points

Himax’s stock price of $7.62 implies a valuation ratio of 49.2x forward P/E. To fully understand why you should be careful with HIMX, check out our full research report (it’s free for active Edge members).

Plexus (PLXS)

Consensus Price Target: $159 (13.3% implied return)

With over 20,000 team members across 26 global facilities, Plexus (NASDAQ: PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors.

Why Do We Steer Clear of PLXS?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.1% annually over the last two years
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.7% for the last five years
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $140.33 per share, Plexus trades at 18.9x forward P/E. Read our free research report to see why you should think twice about including PLXS in your portfolio.

Illumina (ILMN)

Consensus Price Target: $117.74 (-2.4% implied return)

Pioneering the ability to read the human genome at unprecedented speed and affordability, Illumina (NASDAQ: ILMN) develops and sells advanced DNA sequencing and microarray technologies that allow researchers and clinicians to analyze genetic variations and functions.

Why Does ILMN Give Us Pause?

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 per share fell by 2.2% annually over the last five years while its revenue grew, partly because it diluted shareholders
3. Low returns on capital reflect management’s struggle to allocate funds effectively

Illumina is trading at $120.58 per share, or 24.7x forward P/E. Check out our free in-depth research report to learn more about why ILMN doesn’t pass our bar.

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-small-cap company Comfort Systems (+782% 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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