The S&P 500 and the Dow Jones Industrial Average are closing in on their highest levels on the year. However, as we approach these highs, investors should be wary of whether this move up is sustainable with potential Federal Reserve rate hikes in the future. We have put together a montage of companies that analysts are just now saying investors should let go. After all, no one wants to get caught in the next major stock implosion or market correction?
24/7 Wall St. tracks many analyst research reports each weekday, and there were many Sell, Underweight and Underperform ratings issued by Wall Street last week.
General Mills
Goldman Sachs downgraded General Mills Inc. (NYSE: GIS) to Sell from Neutral with a $58 price target last Tuesday, May 24. That target compares to a $62.70 prior close. The stock has a consensus price target of $60.19 and a 52-week trading range of $47.50 to $65.49. Shares ended the week at $62.87.
Bed Bath & Beyond
On Tuesday, May 24, Bed Bath & Beyond Inc. (NASDAQ: BBBY) was started with a Sell rating and was assigned a price target of $37 (versus a $42.52 prior close) at Topeka Capital Markets. The consensus price target is $47.95, and the 52-week range is $41.26 to $72.94. The stock ended last week at $44.53.
Microblogging and social media outfit Twitter Inc. (NYSE: TWTR) took a serious downgrade from MoffettNathanson on Tuesday. This independent research boutique lowered an already cautious Neutral rating on Twitter shares to Sell. The price target was cut to $12 from $15 in the call, mainly noting that hoping is not a real strategy and that Twitter faces both advertiser fatigue and user fatigue alike.
Twitter managed to close down only 2.6% at $14.03 after the call, but its stock put in a post-IPO and all-time low of $13.73 on Tuesday after the downgrade. Shares ended the week at $15.05, with a consensus analyst target of $18.47 and a 52-week range of $13.73 to $38.82.
ViaSat
Wunderlich reiterated as Sell rating on ViaSat Inc. (NASDAQ: VSAT), but the firm raised its target price to $50 from $48 (versus a $68.26 close) on Wednesday May 25. Prior to this, Drexel Hamilton downgraded its coverage to a Sell rating on Monday. Shares of ViaSat closed most recently at $70.08. The stock has a consensus price target of $67.90 and a 52-week range of $56.02 to $79.15.
Workday
A big downgrade of Workday Inc. (NYSE: WDAY) came from Wedbush Securities on May 27. The firm lowered its rating to Underperform from Neutral. This is a “sell” at any other firm, and the $63 price target confirms that very negative view. Workday closed at $78.00 before the call, and shares were down 2.5% to close at $76.01 on Friday. The consensus target price is $76.35, and the 52-week range is $47.32 to $85.67.
NetSuite
On Monday, May 23, NetSuite Inc. (NYSE: N) had coverage initiated at Goldman Sachs with a Sell rating and price target of $68. Shares closed at $77.49 at the time, and they ended the week at $79.25. The consensus analyst target is $86.18. The 52-week trading range is $51.75 to $102.46.
Lumber Liquidators
Topeka Capital Markets initiated Lumber Liquidators Holdings Inc. (NYSE: LL) with a Sell rating and a price target of $9, on Tuesday, May 24. At that time, the stock closed at $11.90. Shares closed at $12.80 on Friday, with a consensus price target of $11.19 and a 52-week range of $10.01 to $23.20.
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