In this article, we will take a look at the 10 stocks analysts have recently downgraded. You can skip our detailed analysis of these companies and go directly to Analysts Are Downgrading These 5 Stocks.
Many investors follow analyst ratings before making an investment decision. Analysts usually evaluate public financial reports, conference calls and market surveys before recommending investors to buy or sell a stock. Therefore, we can say that these ratings can be used as an effective tool before investing in a stock.
Video streaming giant Netflix, Inc. (NASDAQ:NFLX), cryptocurrency exchange Coinbase Global, Inc. (NASDAQ:COIN) and information technology company Hewlett Packard Enterprise Company (NYSE:HPE) were among the notable stocks that recently received a downgrade.
In addition, analysts also cut their ratings for dental products company Envista Holdings Corporation (NYSE:NVST) and electronic signature software provider DocuSign, Inc. (NASDAQ:DOCU).
Luis Louro / shutterstock.com
We will discuss the details of these downgrades in the remaining article.
Analysts Are Downgrading These 10 Stocks
10. HomeStreet, Inc. (NASDAQ:HMST)
Number of Hedge Fund Holders: 14
Shares of HomeStreet, Inc. (NASDAQ:HMST) hit a new 52-week low of $34.78 on Tuesday, June 14, 2022, after B. Riley Securities downgraded the Oregon-based community bank from “Buy” to “Hold.”
In a research note to clients, B. Riley analyst Steve Moss said rising interest rates would weigh on loan growth for banks, pressuring valuations. The analyst also trimmed the price target for HomeStreet, Inc. (NASDAQ:HMST) from $55 per share to $43 per share.
9. Omnicom Group Inc. (NYSE:OMC)
Number of Hedge Fund Holders: 22
Shares of Omnicom Group Inc. (NYSE:OMC) fell to a new low on Tuesday, June 14, 2022, after Edward Jones cut its ratings for the marketing communications company from “Buy” to “Hold.”
Edward Jones analyst David Heger expressed concerns over possible cuts in ad spending. Heger believes businesses may be reluctant to spend more on ads due to the ongoing inflationary environment and rising costs. As Omnicom Group Inc. (NYSE:OMC) primarily relies on its ad services to make money. Therefore, any cut in ad spending from its clients will impact its profitability.
8. Best Buy Co., Inc. (NYSE:BBY)
Number of Hedge Fund Holders: 25
Best Buy Co., Inc. (NYSE:BBY) recently received a downgrade from BofA Securities. The research firm trimmed its rating for the Minnesota-based consumer electronics retailer from “Buy” to “Neutral.”
BofA analyst Elizabeth Suzuki said U.S. customers are avoiding non-essential items and the trend poses a significant risk to Best Buy’s profit outlook for its fiscal year 2024. The research firm also lowered its price target for Best Buy Co., Inc. (NYSE:BBY) from $110 per share to $90 per share.
In its latest quarterly report, Best Buy Co., Inc. (NYSE:BBY) posted adjusted earnings of $1.57 per share, missing expectations of $1.61 per share. The company also slashed its fiscal 2023 adjusted earnings outlook to a range of $8.40 – $9 per share, from its previous projection between $8.85 – $9.15 per share.
Like Best Buy Co., Inc. (NYSE:BBY), analysts also recently downgraded Netflix, Inc. (NASDAQ:NFLX), Global, Inc. (NASDAQ:COIN) and Enterprise Company (NYSE:HPE).
7. FMC Corporation (NYSE:FMC)
Number of Hedge Fund Holders: 26
FMC Corporation (NYSE:FMC), founded in 1883, is a chemical company serving the agricultural market. It is engaged in the production and sale of insecticides, herbicides and fungicides. Its products help farmers to enhance crop yield and quality, besides offering protection against a variety of harmful insects and diseases.
Shares of FMC Corporation (NYSE:FMC) fell over four percent on Monday, June 13, 2022, after Redburn Partners downgraded the company from “Buy” to “Neutral.” Redburn analyst Tony Jones thinks that the company’s 2023 margin growth is expected to take a hit from the rising cost of inputs. FMC stock is now down about 2 percent on a year-to-date basis following the latest drop in its share price.
6. Huntsman Corporation (NYSE:HUN)
Number of Hedge Fund Holders: 36
BofA Securities downgraded Huntsman Corporation (NYSE:HUN) from “Buy” to “Underperform” and cut its price target for the stock from $45 per share to $34 per share. Huntsman stock fell to a nearly eight-month low on Tuesday, June 14, 2022, following the downgrade.
BofA analyst Steve Byrne expressed concerns over the profit stability of the company’s performance products segment, which produces thousands of specialty chemicals used in various industries. In addition, the analyst also predicted a margin drop for Huntsman’s MDI business.
Byrne added that polyurethane producers, including Huntsman Corporation (NYSE:HUN), could also face hurdles due to the changing consumer environment, given their end markets like furniture and apparel.
Click to continue reading and see Analysts Are Downgrading These 5 Stocks.
Suggested articles:
Disclosure: None. Analysts Are Downgrading These 10 Stocks is originally published on Insider Monkey.
