Stocks slid again on Tuesday after a hotter-than-expected inflation report fed bets on higher interest rates, and all three major indexes finished lower. The Dow fell 0.30% to 52,231.89, the S&P 500 lost 0.38% to 7,520.93, and the Nasdaq Composite dropped 0.74% to 25,065.87.
Government data showed consumer prices rose 0.4% in October, the third straight monthly gain of at least that size, against the 0.3% economists expected. Core prices rose 0.3%, ahead of a 0.2% forecast, and traders spent the session weighing how many more rate increases may be coming.
Rate-Hike Talk Hits a Market Already Under Strain
Federal Reserve Governor Christopher Waller said the central bank should raise rates in December and consider a half-point increase, while Dallas Federal Reserve President Lorie Logan said at least two more quarter-point hikes are needed. Traders now see an 84% chance of a quarter-point move next month and a 15% chance of a half-point increase.
Jason Ware, chief investment officer at Albion Financial Group, told Reuters that investors are spooked by the possibility of a 50 basis point hike. That worry landed on a market that had already taken a beating: the Nasdaq closed nearly 12% below its October peak last week, and the S&P 500 sank 4.4% in a single session, its worst day since April 2025. For the other side of that debate, see our list of oversold AI stocks where Wall Street analysts see 50%+ upside.
Skyler Weinand, chief investment officer at Regan Capital, said stocks have seen a heavy rotation out of AI-related names and into defensive sectors such as healthcare. Technology took the sharpest hit. Last week the S&P 500 technology sector fell 7.3% and the Philadelphia semiconductor index dropped more than 12% as fears of a data-center slowdown spread after the midterm elections.
Oxford Economics expects the Fed to raise rates in December and again in March, while Kansas City Fed President Jeff Schmid described policy as still accommodative.
Our Methodology
To compile this list, we reviewed analyst rating downgrades announced on Tuesday, November 10, 2026, as reported by financial news sites. We ranked these stocks in descending order of their average upside potential, based on analysts’ average price target, as of November 11. We also list each stock’s number of hedge fund holders as of Q2 2026, from our database of 1,006 hedge funds.
At Insider Monkey, we are obsessed with what hedge funds do. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).
10 Stocks Analysts Are Downgrading Right Now
10. Peabody Energy (NYSE:BTU)
Market Cap: $2.07 billion
Average Upside Potential: 58%
Number of Hedge Fund Holders: 34
Jefferies analyst Chris LaFemina downgraded Peabody Energy to Hold from Buy on November 10 and lowered his price target to $18 from $30. The downgrade reflects geological issues at the Centurion mine in Australia that have delayed its restart. Centurion produced only about 45,000 tons in October, and Jefferies reduced its operating assumptions for the mine to reflect lower volumes and higher costs. The firm noted that Peabody is operating well in its other segments.
Peabody mines coal in the US and Australia, selling thermal coal for power and metallurgical coal for steelmaking. It cut its fourth-quarter Centurion sales guidance to 300,000 to 500,000 tons after the longwall hit a faulted section, and it lowered full-year seaborne metallurgical volume by 600,000 tons, with costs rising about $15 a ton.
Management now points to the third quarter of 2027 for a significant longwall move. Peabody reported a third-quarter net loss of $0.27 a share, but adjusted EBITDA was $97.5 million, with every segment positive and realized prices up nearly $17 a ton from the prior quarter. Our ranking of the best American mining stocks covers other miners.
9. DraftKings (NASDAQ:DKNG)
Market Cap: $17.24 billion
Average Upside Potential: 33%
Number of Hedge Fund Holders: 54
Wells Fargo analyst Trey Bowers downgraded DraftKings to Equal Weight from Overweight on November 10 and cut his price target to $21 from $30. The call follows the third-quarter report, after which the shares fell 21% on a revenue miss and a guidance reset tied to prediction-market spending.
DraftKings runs a sportsbook and an online casino. It cut its 2026 adjusted EBITDA guidance by 72% at the midpoint to $225 million, mostly because of spending on its prediction markets product, DraftKings Predictions, and its first look at 2027 came in about 20% below consensus. The company has said that a 2028 ban on sports prediction markets would stretch the payback on that investment, so the regulatory outlook is a concern for investors.
DraftKings has also paused its share buybacks, and the stock is down 46% so far this year, at $18.70 after the report. The core sportsbook and online casino business was broadly in line with expectations once unfavorable sports results are set aside. We asked why earnings keep falling while more people bet in our earlier look at the sportsbook’s growth.
8. Vale (NYSE:VALE)
Market Cap: $47.81 billion
Average Upside Potential: 29%
Number of Hedge Fund Holders: 39
Itaú BBA downgraded Vale to Market Perform from Outperform on November 10 and lowered its target for the US-listed shares to $14 from $18, citing higher ocean freight costs, lower sales volumes and a heavier cost structure. The bank cut its 2027 EBITDA estimate by 17% to $14.1 billion, expects free cash flow to yield 5.2% in 2027 against 8.5% in 2026, and sees dividends falling to roughly $2.5 billion. It left its iron ore price assumption unchanged.
Vale mines iron ore in Brazil. Its third-quarter pro forma EBITDA fell 20% to $3.5 billion as the average realized iron ore price dropped 10% to $85.1 a ton, and iron ore output fell 6% after problems at the Serra Norte mine. Base metals EBITDA rose more than 60% to $1.1 billion. Vale has hedged its fourth-quarter freight needs and more than 80% of its 2027 requirements.
Free cash flow was $2.2 billion in the quarter, and net debt of $16.4 billion sits within the company’s $10 billion to $20 billion target range. The company’s courting of Chinese investors, including a possible yuan bond debut, is the subject of our earlier piece on its China ties.
7. Carlyle Group (NASDAQ:CG)
Market Cap: $14.76 billion
Average Upside Potential: 18%
Number of Hedge Fund Holders: 39
UBS downgraded Carlyle to Neutral from Buy on November 10 and lowered its price target to $47 from $60, saying weak fund returns and fundraising delays put the firm’s 2028 growth targets at risk.
Carlyle is an investment firm that manages $479 billion across private equity, credit and other strategies. Its third-quarter distributable earnings rose 17% to $1.12 a share on fund exits, while fee-related earnings fell 6%. The firm raised $11 billion in the quarter and expects at least $20 billion more in the fourth, and $28 billion of committed assets are waiting to start paying fees. Realized proceeds from carry funds reached $9 billion, net accrued performance revenue stood at $2.1 billion, and management describes the firm as early in a multiyear fundraising cycle expected to extend through 2027 and 2028.
Chief Executive Officer Harvey Schwartz named slower fundraising over the past year, lower fee-related earnings and weaker valuations in parts of the buyout portfolio as key risks to Carlyle’s outlook. He also said the firm has returned close to $100 billion to fund investors since the start of 2024. The shares fell 6.7% after the report.
6. Wix.com (NASDAQ:WIX)
Market Cap: $2.83 billion
Average Upside Potential: 16%
Number of Hedge Fund Holders: 40
Bank of America analyst Michael McGovern downgraded Wix to Underperform from Buy on November 10 and cut his price target to $68 from $75. He cites slowing growth in Partners, the business where agencies build sites for clients, competition from AI coding tools such as Lovable and Cursor, and higher marketing spending that could limit profit. He says rapid growth at Base44, Wix’s AI app-building platform, is masking weaker underlying performance.
Third-quarter bookings rose 11% to $573 million and revenue rose 13% to $570.2 million, ahead of the $566.1 million analysts expected, but adjusted operating income of $68.7 million fell short of the $74 million estimate. McGovern allows he could prove too pessimistic if Base44 keeps its subscribers through renewal cycles and becomes profitable faster than expected, and he sees stronger adoption of Headless as one way to steady Partners.
Wix says Base44 is nearing $250 million in annual recurring revenue, expects its gross margin to exit the year above 60%, and says renewal rates are improving across user cohorts, with retention of its earliest cohort at 12 months above expectations. It plans to keep spending heavily to win Base44 users.
5. Shell (NYSE:SHEL)
Market Cap: $278.71 billion
Average Upside Potential: 14%
Number of Hedge Fund Holders: 49
Grupo Santander downgraded Shell to Neutral from Outperform on November 10 and trimmed its price target to 4,100 pence from 4,150.
Investors are watching oil prices, which have eased on hopes that the Iran war is nearing an end. Chief Financial Officer Sinead Gorman told analysts on the third-quarter call that October refining margins had softened from the quarter’s level, and she warned that elevated freight costs could squeeze realized margins in the fourth quarter.
Shell runs oil and gas production and refining. Its third-quarter adjusted earnings were $10.8 billion, up from $9.8 billion in the second quarter, on record refining margins of $42 a barrel, and free cash flow was $16.3 billion, down from $17.5 billion. It lowered full-year capital spending guidance to $23 billion to $25 billion. The company announced a $5 billion share buyback, took a final investment decision on LNG Canada Phase 2, and ended the quarter with net debt of $39.7 billion. It reports fourth-quarter results on February 4, 2027. We asked whether the energy giant is a buy in our earlier analysis of why investors are watching Shell.
4. AvePoint (NASDAQ:AVPT)
Market Cap: $3.51 billion
Average Upside Potential: 14%
Number of Hedge Fund Holders: 37
Morgan Stanley downgraded AvePoint to Equal Weight from Overweight on November 10. AvePoint calls itself the AI Trust Company and sells software that helps companies govern their data and AI, largely around Microsoft’s cloud. On the day of the downgrade it announced a deeper Microsoft partnership to help enterprises deploy and govern AI. Investor attention has centered on margins.
Third-quarter non-GAAP operating margin slipped to 16.8% from 22.0%, and non-GAAP operating income fell to $22.0 million from $24.1 million, though GAAP operating margin rose to 8.7% from 7.4%, and earnings of $0.08 a share missed the $0.09 consensus, even though total revenue rose 19% to $131.1 million, ahead of the $129.39 million analysts expected.
Annual recurring revenue reached $495.1 million, up 27%, SaaS revenue rose 26% to $105.5 million, and customers paying more than $100,000 rose 28% to 976. Management guided full-year revenue growth of about 22% at the midpoint, and the company ended the quarter with $418.3 million in cash and short-term investments. We examined the margin question in our piece on why the adjusted margin did not follow ARR higher.
3. Trex (NYSE:TREX)
Market Cap: $5.56 billion
Average Upside Potential: 13%
Number of Hedge Fund Holders: 45
D.A. Davidson downgraded Trex to Neutral from Buy on November 10 and kept its price target at $55. The firm worries that the inventory distributors stocked in the second half of 2026 is adding more to sales than investors realize, which raises the risk for 2027.
Trex makes wood-alternative composite decking and railing. Third-quarter sales rose 26% to $360 million, the second record quarter in a row, and about $30 million of that came from distributors stocking up. Excluding that, management put underlying demand growth near 15%. Adjusted gross margin fell to 36.9% from 41% a year earlier because of freight, labor inefficiencies and higher depreciation, though free cash flow stayed healthy.
Trex raised its full-year sales guidance to a range of $1.296 billion to $1.306 billion, and it has not offered 2027 guidance. Net income was $52 million, or $0.52 a share, against $0.48 a year earlier, and fourth-quarter sales guidance is $175 million to $185 million. The Arkansas plant is on schedule to operate at 50% capacity by year-end. The shares jumped 14.3% on the day of the report and gave some of it back after the downgrade.
2. Costco (NASDAQ:COST)
Market Cap: $480.73 billion
Average Upside Potential: 0%
Number of Hedge Fund Holders: 104
Freedom Broker analyst Georgy Vashchenko downgraded Costco to Hold from Buy on November 10 and raised his price target to $1,050 from $1,010. The stock trades at 52.18 times earnings, a premium few retailers command.
Costco sells groceries and goods to members at 943 warehouses in the US and abroad. October net sales rose 12.6% to $24.50 billion, comparable sales excluding gasoline prices and currency swings rose 7.3% across the company and 8.1% in the US, traffic rose 4.1% worldwide, and digitally enabled sales rose 22.6% excluding currency. Sales for the first nine weeks of the fiscal year rose 12.8% to $54.52 billion. After the market closed on the day of the call, the company announced a special dividend of $30 per share and renewed its buyback authorization through 2030.
Its fiscal fourth-quarter report in September beat estimates by $0.08 a share, with adjusted earnings of $6.60. Costco reports fiscal first-quarter results on December 10, and analysts expect adjusted earnings of $4.92 a share. We looked at one route to more growth in our piece on whether Costco’s membership model can travel further overseas.
1. Academy Sports and Outdoors (NASDAQ:ASO)
Market Cap: $4.30 billion
Average Upside Potential: -9%
Number of Hedge Fund Holders: 29
Loop Capital analyst Anthony Chukumba downgraded Academy Sports and Outdoors to Hold from Buy on November 10 and kept his price target at $69, which sits near the current share price. He says the stock’s 42% gain already prices in his bullish outlook and he wants a better entry point, while staying upbeat on the business. Cantor Fitzgerald started coverage the same week with an Overweight rating and an $89 target.
Academy sells sports and fitness gear, camping equipment, hunting and fishing supplies, apparel and footwear through its stores and online. The shares trade near the top of a 52-week range of $41.29 to $71.29. In the second quarter ended August 1, 2026, net income rose 10% to $137.9 million and adjusted earnings rose 19.1% to $2.31 a share, and management raised its full-year EPS guidance.
Comparable sales fell 0.4%, and Chief Executive Officer Steve Lawrence said consumer spending remains pressured, particularly among lower-income households. The next report is expected in early December, and analysts are looking for about $1.32 a share. We covered the last round of target changes in our piece on target hikes after the second quarter.
READ NEXT: Academy Sports (ASO) Turns A Tariff Refund Into A Profit Surge and Costco (COST) vs. Walmart (WMT): Which Retailing Giant Has a Wider Moat?
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