Sell Alert: 10 Stocks Analysts Just Downgraded

8. PDD Holdings (NASDAQ:PDD)

Average Upside Potential: 40%

Number of Hedge Fund Holders: 52

Morgan Stanley analyst Eddy Wang cut PDD Holdings to Equal-Weight from Overweight on November 9 and lowered his price target to $90 from $129. His complaint is about cash. PDD sits on a large pile of it, yet investors have little sense of when or how much will come back to shareholders, so Morgan Stanley now applies a 70% discount to the company’s net cash.

PDD runs Pinduoduo, a Chinese e-commerce platform, and its overseas marketplace Temu. The balance sheet is the bull argument: cash and short-term investments stood at RMB456.4 billion, or US$67.3 billion, at the end of the second quarter. The profit picture is where bears push back. Second-quarter revenue rose 8%, but net income fell 12%, even as transaction services revenue grew 13%. Bears say the slower profit growth suggests heavy spending to win over merchants is not yet paying off, while bulls argue that the cash gives PDD time to prove otherwise. Wang’s downgrade leans toward the bears for now, since he sees limited visibility on how much of that cash will ever reach shareholders.

Whether those merchant investments pay off is the question behind our look at PDD’s slowing profit growth.

7. Pan American Silver (NYSE:PAAS)

Average Upside Potential: 39%

Number of Hedge Fund Holders: 41

TD Cowen cut Pan American Silver to Hold from Buy on November 9 and lowered its price target to C$45 from C$52. The firm’s trouble spot is the Jacobina gold mine in Brazil, where seismic activity and an inspection by Brazil’s mining agency have clouded the outlook. TD Cowen trimmed its Jacobina estimate to about 158,000 ounces a year through 2029.

The company’s own numbers back up part of that worry. Pan American, which mines silver and gold, cut its full-year gold production guidance to 660,000 to 680,000 ounces from 700,000 to 750,000.

Silver tells a better story. Third-quarter silver output rose to 6.07 million ounces, attributable free cash flow reached $377 million, up from $256 million a year earlier, and the company returned $300 million to shareholders. Bulls lean on that cash flow and on silver, while TD Cowen is focused on gold. Investors who own the stock for silver exposure may see Jacobina as a one-mine problem, while those watching gold output see a guidance cut that could be hard to reverse. Our look at how Pan American’s reserve base is growing weighs whether better mines are behind it.

6. Zillow Group (NASDAQ:ZG)

Average Upside Potential: 24%

Number of Hedge Fund Holders: N/A

KeyBanc analyst Sergio Segura downgraded Zillow Group to Sector Weight from Overweight on November 9, citing the challenges of the housing market and the company’s sensitivity to interest rates. Zillow runs the home-search and rental marketplaces where many Americans look for their next place to live, and its core business is slipping. Residential revenue fell 4% to $419 million, while mortgages revenue rose 32% to $70 million and rentals revenue jumped 26% to $220 million.

The mix explains the split view. Bears see a housing market that stays stuck and a business that leans on interest rates. Bulls see revenue that still grew 7% to $724 million overall, with rentals and mortgages growing fast enough to offset the weakness at the top. Chief Executive Officer Jeremy Wacksman said “Q3 highlighted Zillow’s durability.” Investors are watching whether the newer businesses can keep growing fast enough to make up for a residential segment that is shrinking, and Segura’s downgrade suggests he is not convinced yet.

Our piece on the restructuring and headwinds hiding behind Zillow’s strong beats looks at what the bears are watching.

5. BETA Technologies (NYSE:BETA)

Average Upside Potential: 10%

Number of Hedge Fund Holders: 20

Jefferies analyst Sheila Kahyaoglu cut BETA Technologies to Hold from Buy on November 9 and trimmed her price target to $27 from $29. She now expects aircraft deliveries to start in 2028 rather than 2027 and lowered her 2028 delivery estimate to 140 aircraft from 200. The delay matters because BETA’s value depends on aircraft that have not been delivered yet, so each year of slippage pushes back the revenue investors are waiting for.

BETA builds electric aircraft, including the A250, which takes off and lands vertically. The company has a lot going for it on paper. Third-quarter revenue nearly doubled, up 98% to $17.7 million, and its commercial backlog is just over $4.0 billion across 1,040 aircraft. The A250 also became the first electric vertical-takeoff aircraft to receive an FAA special airworthiness certificate for market surveys, and BETA raised its 2026 revenue guidance to $52 million to $57 million.

Chief Executive Officer Kyle Clark said the company is “exceeding the targets we set at the beginning of 2026.” The question for investors is whether that momentum survives a longer wait for deliveries.