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. That said, here are two stocks where you should be greedy instead of fearful and one where the skepticism is well-placed.
One Stock to Sell:
8x8 (EGHT)
Consensus Price Target: $2.36 (10.7% 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 Should You Dump EGHT?
- Products, pricing, or go-to-market strategy may need some adjustments as its 1.3% average billings growth over the last year was weak
- Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
At $2.13 per share, 8x8 trades at 0.4x forward price-to-sales. Read our free research report to see why you should think twice about including EGHT in your portfolio.
Two Stocks to Watch:
Quanta (PWR)
Consensus Price Target: $419.40 (8.6% implied return)
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Are We Backing PWR?
- Backlog has averaged 20.3% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Forecasted revenue growth of 12.8% for the next 12 months indicates its momentum over the last two years is sustainable
- Earnings per share grew by 25.1% annually over the last two years, massively outpacing its peers
Quanta is trading at $386.24 per share, or 34.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Montrose (MEG)
Consensus Price Target: $30.80 (-0.6% implied return)
Founded to protect a tree-lined two-lane road, Montrose (NYSE:MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Why Are We Positive On MEG?
- Market share has increased this cycle as its 18% annual revenue growth over the last two years was exceptional
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 132% outpaced its revenue gains
- Free cash flow margin expanded by 12.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Montrose’s stock price of $30.99 implies a valuation ratio of 22.1x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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 Exlservice (+354% 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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