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.

At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here are three stocks where the outlook is warranted and some alternatives with better fundamentals.

Himax (HIMX)

Consensus Price Target: $9 (-2.6% 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 Do We Steer Clear of HIMX?

1. Annual sales declines of 1.3% for the past five years show its products and services struggled to connect with the market during this cycle
2. Overall productivity fell over the last five years as its plummeting sales were accompanied by a decline in its operating margin
3. 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Himax is trading at $9.24 per share, or 37.8x forward P/E. Check out our free in-depth research report to learn more about why HIMX doesn’t pass our bar.

First Commonwealth Financial (FCF)

Consensus Price Target: $20.67 (10.3% implied return)

Tracing its roots back to the Great Depression era of 1934, First Commonwealth Financial (NYSE: FCF) is a financial holding company that provides consumer and commercial banking, wealth management, and insurance services across Pennsylvania and Ohio.

Why Does FCF Give Us Pause?

1. Muted 4.1% annual revenue growth over the last two years shows its demand lagged behind its banking peers
2. Estimated net interest income decline of 3.2% for the next 12 months implies a challenging demand environment
3. Earnings per share fell by 5.4% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable

At $18.74 per share, First Commonwealth Financial trades at 1.2x forward P/B. Read our free research report to see why you should think twice about including FCF in your portfolio.

Viavi Solutions (VIAV)

Consensus Price Target: $30.93 (-26.1% implied return)

Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ: VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure.

Why Does VIAV Worry Us?

1. Annual revenue growth of 2.3% over the last five years was below our standards for the industrials sector
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 3.1% annually while its revenue grew
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Viavi Solutions’s stock price of $41.88 implies a valuation ratio of 44.7x forward P/E. Dive into our free research report to see why there are better opportunities than VIAV.

Stocks We Like More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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.