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.
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. Keeping that in mind, here are three stocks facing legitimate challenges and some alternatives worth exploring instead.
Qorvo (QRVO)
Consensus Price Target: $96.48 (14.2% implied return)
Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.
Why Is QRVO Risky?
- Muted 2.3% annual revenue growth over the last five years shows its demand lagged behind its semiconductor peers
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 22.3 percentage points
- Free cash flow margin shrank by 11.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $84.50 per share, Qorvo trades at 14.2x forward P/E. To fully understand why you should be careful with QRVO, check out our full research report (it’s free).
Fluence Energy (FLNC)
Consensus Price Target: $8.74 (12% implied return)
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems.
Why Are We Wary of FLNC?
- High input costs result in an inferior gross margin of 6.4% that must be offset through higher volumes
- 12 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Fluence Energy is trading at $7.80 per share, or 19.1x forward P/E. If you’re considering FLNC for your portfolio, see our FREE research report to learn more.
Premier (PINC)
Consensus Price Target: $22.33 (5% implied return)
Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ:PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.
Why Do We Think PINC Will Underperform?
- Annual sales declines of 9.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Sales are projected to tank by 10.6% over the next 12 months as its demand continues evaporating
- Earnings per share have contracted by 9.5% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
Premier’s stock price of $21.27 implies a valuation ratio of 15.8x forward P/E. Check out our free in-depth research report to learn more about why PINC doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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.
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