Now that the bull market is nearing nine years old, and after the Dow rose 25% and the S&P 500 rose 19% in 2017, investors are considering how they want to position themselves for continued gains in 2018 and beyond. The market is already off to one its strongest starts in years on the heels of tax reform and heading into accelerated gross domestic product and earnings growth. Some investors might imagine that almost all stocks have risen like the Dow and S&P 500 have risen 300% from the panic selling lows of 2009. Unfortunately, that’s far from the truth.
It just so happens that some stocks have fallen from grace. And some Wall Street analysts and market pundits see some companies being serious losers ahead, even if the bull market rages on. 24/7 Wall St. tracks dozens of analyst calls each trading day, and this becomes hundreds of analyst calls each week. Some of those analyst calls cover stocks that analysts want their clients to sell or to avoid.
Imagine what the implications are for a company to be performing poorly during a great economy and a raging bull market. Maybe it’s just a matter of a stock’s valuation exceeding prior targets, or maybe it is something that things are going rather poorly for the company. Some companies just never seem to be on the right footing, even in the best of times.
24/7 Wall St. has tracked eight well-known stocks that analysts are telling their clients to sell or to avoid in 2018. Consensus price targets are from Thomson Reuters, and additional color has been added on most of these calls.
Analysts on Wall Street predict these eight stocks will not participate with further upside in this raging bull market in 2018.
Etsy Inc. (NASDAQ: ETSY) has more than doubled from its lows in 2017, and that may be about all investors can hope for, if one analyst is right. Morgan Stanley downgraded the stock to Underweight from Equal Weight and cut its target price to $17 on January 12.
The online craft goods seller previously traded at $20.56, and Etsy shares closed down 5% at $19.54 on the same day. Its 52-week trading range is $9.41 to $21.86, and the consensus analyst price target is now closer to $18.
GoPro Inc. (NASDAQ: GPRO) seriously needs new leadership after its latest round of layoffs, lower guidance and exit from the drone market. The shares were downgraded to Neutral from Buy at Longbow Research on January 8, but on January 9 Dougherty reiterated its Sell rating and slashed its price target to $4 from $7. Wedbush Securities also maintained a Neutral rating on January 9, but the firm slashed its price target to $6 from $10.50.
GoPro shares closed out Friday at $6.23, and the stock is now down over 30% so far in 2018. It had a 52-week range of $7.14 to $11.89, but now its 52-week low is $5.04.
JinkoSolar Holding Co. Ltd. (NYSE: JKS) was started with a Sell rating by Goldman Sachs on January 9, and it was assigned a $16 price target, which compares with a $24.13 prior closing price.
Surprisingly, Jinko Solar shares have seen very little volatility in 2018. At $24.59 as of Friday’s close, the stock has a 52-week range is $13.70 to $30.50, and its consensus target price now is down around $18.