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.

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.

8x8 (EGHT)

Consensus Price Target: $2.31 (0.4% implied return)

Named after its founding year (1987) with "8x8" representing binary code for communications, 8x8 (NASDAQ: EGHT) provides cloud-based contact center and unified communications solutions that enable businesses to manage customer interactions and internal communications through a single platform.

Why Do We Pass on EGHT?

1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 2.4% underwhelmed
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. Operating margin increased by 2.1 percentage points over the last year as it refined its cost structure

8x8 is trading at $2.30 per share, or 0.4x forward price-to-sales. To fully understand why you should be careful with EGHT, check out our full research report (it’s free).

Fastenal (FAST)

Consensus Price Target: $44.68 (-3.3% implied return)

Founded in 1967, Fastenal (NASDAQ: FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Why Are We Cautious About FAST?

1. Sales trends were unexciting over the last two years as its 5.7% annual growth was below the typical industrials company
2. Earnings per share lagged its peers over the last two years as they only grew by 4.4% annually

At $46.22 per share, Fastenal trades at 37.9x forward P/E. Dive into our free research report to see why there are better opportunities than FAST.

Markel Group (MKL)

Consensus Price Target: $2,072 (-0.4% implied return)

Often referred to as a "mini Berkshire Hathaway" for its three-engine business model of insurance, investments, and wholly-owned businesses, Markel Group (NYSE: MKL) is a specialty insurance company that underwrites complex risks, manages investment portfolios, and owns a diverse collection of operating businesses.

Why Does MKL Give Us Pause?

1. Net premiums earned only expanded by 2.5% annually over the last two years, trailing its insurance peers as its scale limited incremental business
2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue
3. Pre-tax profit margin didn’t move over the last two years, showing it couldn’t increase its efficiency

Markel Group’s stock price of $2,081 implies a valuation ratio of 1.3x forward P/B. Check out our free in-depth research report to learn more about why MKL doesn’t pass our bar.

Stocks We Like More

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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.