3 Unpopular Stocks We Think Twice About

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. That said, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.

Himax (HIMX)

Consensus Price Target: $8.54 (0.4% 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 Is HIMX Risky?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6% annually over the last two years
2. Sales are projected to tank by 4.4% over the next 12 months as its demand continues evaporating
3. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 22.9 percentage points

Himax is trading at $8.50 per share, or 56.9x forward P/E. Read our free research report to see why you should think twice about including HIMX in your portfolio.

Oxford Industries (OXM)

Consensus Price Target: $36 (-10.8% implied return)

The parent company of Tommy Bahama, Oxford Industries (NYSE:OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.

Why Do We Avoid OXM?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Poor free cash flow margin of 3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Oxford Industries’s stock price of $40.36 implies a valuation ratio of 16.2x forward P/E. To fully understand why you should be careful with OXM, check out our full research report (it’s free).

Brighthouse Financial (BHF)

Consensus Price Target: $65.50 (2.6% implied return)

Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ:BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.

Why Do We Pass on BHF?

1. 1.4% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
2. Annual book value per share declines of 11.1% for the past five years show its capital management struggled during this cycle
3. Elevated debt-to-equity ratio of 1.3× suggests the firm is overleveraged and may struggle to secure additional financing

At $63.82 per share, Brighthouse Financial trades at 0.8x forward P/B. Dive into our free research report to see why there are better opportunities than BHF.

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 6 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.