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.

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

Beyond Meat (BYND)

Consensus Price Target: $2.75 (-10% implied return)

A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.

Why Do We Think BYND Will Underperform?

1. Declining unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Beyond Meat’s stock price of $3.06 implies a valuation ratio of 0.8x forward price-to-sales. If you’re considering BYND for your portfolio, see our FREE research report to learn more.

Skechers (SKX)

Consensus Price Target: $62.30 (-1.5% implied return)

Synonymous with "dad shoe", Skechers (NYSE: SKX) is a footwear company renowned for its comfortable, stylish, and affordable shoes for all ages.

Why Should You Sell SKX?

1. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
2. Estimated sales growth of 7.6% for the next 12 months implies demand will slow from its two-year trend
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Skechers is trading at $63.25 per share, or 14.8x forward P/E. To fully understand why you should be careful with SKX, check out our full research report (it’s free).

Markel Group (MKL)

Consensus Price Target: $1,895 (-5.5% 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 Are We Wary of MKL?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual net premiums earned increases of 2.9% for the last two years
2. Estimated sales decline of 4.8% for the next 12 months implies a challenging demand environment
3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8% annually

At $2,006 per share, Markel Group trades at 1.4x 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

Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our 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 Comfort Systems (+782% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.