It’s no secret that the bull market is now nearing its ninth year. It’s also no secret that the major stock market indexes are up at all-time highs. Still, it is a market of stocks, and not all stocks are surging to all-time highs. And some stocks might even have risen handily above their fair value.
24/7 Wall St. reviews dozens of analyst research reports each day of the week in an effort to find new investing and trading ideas for our readers. Some of these analyst reports cover stocks to buy. Others cover stocks to sell or stocks to avoid. Those sell-ratings come with labels such as Sell, Underperform, Underweight, Negative and Reduce.
We have noticed a higher number of sell-related analyst calls so far this week than we are used to seeing. Maybe this is not a reason to sell stocks in general, but the analysts have concerns about each of these companies. Some of the sell-equivalent ratings are also from larger firms and well-known analysts. Many analysts and brokers tell their clients to buy stocks all the time, but many investors have a harder time getting to hear when it’s time to sell a stock.
Consensus analyst price target data and valuation metrics are from the Thomson Reuters sell-side research service. Additional color and commentary has been added on most of these daily analyst calls. These were 11 stocks given Sell and their equivalent ratings on November 6 and November 7 of 2017.
Apache Corp. (NYSE: APA) was reiterated as Underperform, along with a $38 price target, at Jefferies on November 6. This compares with a recent share price of $45.50, but Jefferies said the company’s tone on its post-earnings call implied a more measured approach that has it modeling for a lower level of spending next year.
Apache shares have a 52-week trading range of $38.14 to $69.00, and the consensus analyst target price is $47.85. The lowest listed target price is still down at $26.
Essex Property Trust (NYSE: ESS) was downgraded to Underperform from Neutral at Mizuho on November 6. The price target of $250 is not exactly a panic level, considering a pre-call price of $253.98.
This apartment REIT has a 52-week range of $208.92 to $270.04, and its consensus analyst target of $268.00 does not imply that much upside ahead.
Exxon Mobil Corp. (NYSE: XOM) was a part of a downgrade at HSBC, wherein the firm cut a Hold rating to Reduce. The firm also cut its target to $77 from $81.50 in the call, noting that Exxon’s cash flows are lagging that of rival Royal Dutch Shell — close to the same cash flow but, with Shell worth much less in market cap.
Exxon Mobil shares were down just 0.4% at $83.39 late on Tuesday, and the consensus target price was $83.93 before the call. The 52-week range is $76.05 to $93.22.
Frank’s International N.V. (NYSE: FI) was downgraded to Underperform from an already cautious Neutral rating at Credit Suisse on November 7. The engineered tubular services provider for the oil and gas industries saw its price target slashed to $4 from $8, versus a prior close of $7.31. Credit Suisse slashed estimates and said that it sees no support for the valuation here.
Frank’s has a 52-week range of $6.04 to $13.57, and its consensus target price was $8.14 before the “sell-equivalent” downgrade.
Goldman Sachs Group Inc. (NYSE: GS) was downgraded to Sell at a firm called Vertical Group on November 6. This is from analyst Dick Bove, and he thinks that more earnings issues may surface here. The shares were at $244.40 last Friday ahead of the call, and they were down at $243.49 on Monday and down again at $240.80 on Tuesday.
Goldman Sachs has a 52-week range of $178.46 to $255.15 and the consensus analyst target is $247.84.