Wall Street has had a rough start to November. The Nasdaq Composite fell 5.52% on November 5, its steepest one-day drop in 19 months, and slid into a correction, more than 10% below its October 6 record close. The semiconductor index lost more than 12% that day, and about $3 trillion in value was erased from S&P 500 companies.
Fear of tighter rules on AI drove much of the rout. Democratic wins in the November elections raised concerns that stricter regulation could slow the buildout of AI infrastructure, and the stocks tied to data centers took the hardest hit. Investors who had been paying up for AI growth suddenly had to ask how much of that growth could be stopped by politics.
Pessimism Meets a Stronger Jobs Market
Not everyone saw the drop as a verdict on the AI trade. Jed Ellerbroek of Argent Capital Management described the selling as a capitulation phase for data center beneficiaries, meaning forced selling that often marks a low. A Wall Street research shop, Yardeni, argued that political pushback on data centers amounts to “speed bumps, not roadblocks, even though Wall Street seems to be pricing in the latter.”
The economy did not offer a cushion. Payrolls rose by 165,000 in October, far above the 65,000 to 70,000 economists expected, and the unemployment rate stood at 4.1%. That kept a December rate hike in play, and Cleveland Fed President Beth Hammack and Richmond Fed President Thomas Barkin have both hinted that higher rates could be on the table.
Our ranking of oversold AI stocks where Wall Street analysts see 50%+ upside looks at the corner of the market that sold off the most.
Strategists Pull Back on US Stocks
On Monday, strategists led by Beata Manthey cut US stocks and the global technology sector to neutral and raised European stocks outside the UK to overweight. Manthey warned that positioning in stocks “could reset lower into net-short territory.” The S&P 500 had its biggest weekly loss since April 2025, which helps explain why many investors are looking for cheaper places to put money. You might also be interested in our list of affordable stocks Wall Street analysts like.
Stocks bounced back on Monday. By midday, the Dow was up about 2%, the S&P 500 about 2.3%, and the Nasdaq about 2.6%. Inflation data due later this week is the next big test for the market and for the Federal Reserve’s rate path, and analysts have kept reshuffling their ratings as the numbers move.
Photo by Pascal Bernardon on Unsplash
Our Methodology
To compile this list, we reviewed analyst rating downgrades announced on Monday, November 9, 2026, as reported by financial news sites. From the stocks that came up, we picked the 10 with the lowest average upside potential, as of November 9, 2026, and ranked them in descending order of this metric. 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).
Sell Alert: 10 Stocks Analysts Just Downgraded
10. Nvidia (NASDAQ:NVDA)
Average Upside Potential: 88%
Number of Hedge Fund Holders: 285
Stefan Chang, an analyst at Aletheia Capital, cut Nvidia to Hold from Buy on November 9 and withdrew his $340 price target. His worry is not demand for the chips but the money Nvidia has promised to the companies buying them. Chang said an AI Computing Partner program has pushed the company’s financial commitments up more than tenfold, to $165 billion in the second quarter of fiscal 2027, and he called the funding picture for smaller AI cloud builders opaque. He also pointed to a guarantee the company gave on an Ohio data center.
Nvidia designs the chips that run most large AI data centers, and the business behind the worry is still growing fast. Revenue came in at $96.2 billion last quarter, up 106% from a year earlier, and Chief Executive Officer Jensen Huang said the AI infrastructure buildout is “at full steam.” The company guided to $108.0 billion for the current quarter without counting any Data Center compute revenue from China.
Fresh numbers arrive when Nvidia reports again next week. Our look at how Nvidia is using its AI growth to chase autonomous driving covers one bet beyond the data center.
9. DraftKings (NASDAQ:DKNG)
Average Upside Potential: 43%
Number of Hedge Fund Holders: 54
Three firms downgraded DraftKings on November 9, and prediction markets were at the center of the debate. UBS analyst Robin Farley moved to Neutral from Buy with a $22 target, saying it is hard to put meaningful value on that business while the regulatory outlook is unclear. JPMorgan analyst Daniel Politzer cut the stock to Neutral from Overweight with a $21 target, down from $30, and said he has little conviction in 2027 and 2028 EBITDA. Stifel analyst Jeffrey Stantial went to Hold from Buy with a $21 target, noting that the company has now missed its initial full-year guidance three years in a row.
DraftKings runs online sportsbook and casino apps, and the core product is still growing. Third-quarter revenue rose 16% to $1.33 billion, and monthly unique payers climbed about 13% to 4.1 million. Management is guiding to $7.35 billion to $7.75 billion in revenue for 2027.
Management has called the quarter “a pivotal moment” and now guides to 2026 adjusted EBITDA of $175 million to $275 million. That tension is the subject of our piece on why DraftKings’ earnings are falling while it attracts more bettors.
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.
4. TransUnion (NYSE:TRU)
Average Upside Potential: 9%
Number of Hedge Fund Holders: 35
Rothschild & Co Redburn downgraded TransUnion to Neutral from Buy on November 9 while raising its price target to $91 from $89. The firm pointed to slower growth in US non-mortgage business, disappointing margins, and extra interest expense from the third quarter, and it expects US mortgages to add to the challenges in 2027. Cash conversion and growth in India were the positives it noted.
TransUnion collects consumer credit data and sells reports and risk scores to lenders and other businesses. Third-quarter revenue rose 12.2% to $1.31 billion, though the adjusted EBITDA margin slipped to 35.4% from 36.3%. Chief Executive Officer Chris Cartwright said TransUnion “delivered another quarter of strong results exceeding our guidance.”
The company raised its full-year adjusted earnings guidance, so the debate is about the quality of growth rather than whether it is there. Bulls point out that guidance moved up, not down, and that the downgrade came with a higher price target. Bears note that the margin slipped and that Redburn sees 2027 as a tougher year for mortgage-related business. Organic constant-currency revenue growth was 7.6%, well below the headline 12.2%.
3. Molson Coors (NYSE:TAP)
Average Upside Potential: 6%
Number of Hedge Fund Holders: 41
JPMorgan analyst Drew Levine downgraded Molson Coors to Underweight from Neutral on November 9 and lowered his price target to $37 from $41, after the brewer’s third-quarter report. He pointed to soft US beer demand, a tough competitive picture in the UK, and cost increases that outrun the savings, with little room left to trim marketing and administrative spending.
The company’s own report shows what he means. Molson Coors, the brewer behind Coors and Miller, saw third-quarter net sales fall 1.6% to $2.93 billion, and global brand volume dropped 4.9%. Management now expects 2026 underlying earnings per share to decline 16% to 19%, a steeper fall than the 11% to 15% it forecast before.
Bulls can point to a strategy still in motion and to cost cuts already made, while bears argue those savings are being outrun by rising costs. Chief Executive Officer Rahul Goyal said, “We believe our strategy is on the right track,” but the quarter did not yet show enough payoff from it. Our ranking of the best beverage stocks according to analysts covers more of the group.
2. Amrize (NYSE:AMRZ)
Average Upside Potential: 6%
Number of Hedge Fund Holders: 39
Berenberg cut Amrize to Hold from Buy on November 9, a day that put the building materials maker among the stocks analysts marked down. Amrize sells cement, aggregates, and building envelope products such as roofing, and its latest update showed demand and costs pressing on profit.
Full-year adjusted EBITDA is now expected at $2.95 billion to $3.05 billion and revenue at $12.2 billion to $12.4 billion, a forecast that reflects cost inflation and elevated interest rates. The weakest spot is the Building Envelope segment, where EBITDA fell 14.6% to $182 million and the margin dropped 410 basis points to 19.6%. Cement volume slipped 4.2% in the quarter, a worrying sign because cement is a business that depends on construction activity, so higher rates weigh on demand.
Bulls can point to a company that is still growing. Third-quarter revenue rose 2.2% to $3.77 billion, and adjusted EBITDA edged up 0.2% to $1.08 billion despite the pressure in roofing. Chairman and Chief Executive Officer Jan Jenisch said the company is “proactively managing what we can control.” Even so, a rating cut like Berenberg’s suggests analysts want proof that margins have stopped slipping before they get more positive.
1. Installed Building Products (NYSE:IBP)
Average Upside Potential: -2%
Number of Hedge Fund Holders: 29
Stifel analyst W. Andrew Carter cut Installed Building Products to Hold from Buy on November 9, even as he raised his price target to $225 from $220. His argument centers on valuation, and he also lowered his fiscal 2028 EBITDA estimate to $534 million from $551 million.
Installed Building Products puts insulation and other building products into new homes and commercial buildings. The third quarter backs up Carter’s caution on margins. Revenue rose 3.9% to $808.4 million, but adjusted EBITDA fell 8.3% and the margin dropped to 15.9% from 18.0%. Commercial same-branch sales jumped 10.3%, while residential sales fell 2.6%.
Chief Executive Officer Jeff Edwards said “affordability and consumer confidence remain headwinds for single-family construction.” That leaves commercial work carrying the growth. Bulls like that commercial work is growing at a double-digit pace and offsetting a soft home-building market. Bears note that the valuation argument leaves little cushion if estimates keep falling and single-family construction stays weak, a risk that Carter’s lower 2028 estimate already hints at. Our piece on how the company grows revenue while margins quietly slip lays out the same tension.
READ NEXT: Nvidia (NVDA) Trades Far Below Its Usual Multiple, Is Customer Debt the Real Risk? and Equifax (EFX) vs. TransUnion (TRU): Which Beaten-Down Credit Bureau Is the Better Buy?
