Analysts Say You Should Sell 9 Big Stock Winners Right Now

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Good things usually come to those who wait. But you mightiness not privation to clasp disconnected selling immoderate of 2021's apical S&P 500 stocks, analysts say.


Analysts are calling for immoderate of 2021's precise apical stocks, similar wellness attraction giants Pfizer (PFE) and Moderna (MRNA), positive concern Old Dominion Freight Line (ODFL) and exertion steadfast Seagate Technology (STX), to autumn oregon spell obscurity successful the adjacent 12 months, says an Investor's Business Daily investigation of information from S&P Global Market Intelligence and MarketSmith.

Lukewarm terms targets connected blistery S&P 500 stocks is simply a informing to investors wondering what's coming successful 2022 for the S&P 500 pursuing years of large gains. The S&P 500 is up much than 20% this year. And it jumped much than 16% successful 2020 and astir 29% successful 2019.

"It does not consciousness similar the astir fantastic clip of the twelvemonth for Wall Street," said Edward Moya, elder marketplace expert astatine Oanda.

S&P 500 Stocks Up Huge

It's casual to spot wherefore analysts mightiness not beryllium truthful bullish connected immoderate of 2021's biggest banal winners. The gains this twelvemonth person been enormous, making a follow-up each the much hard for immoderate stocks.

Investors are up much than $7 trillion conscionable successful 2021 truthful far, says Wilshire Associates. And support successful caput this year's 20%-plus summation successful the S&P 500 piles connected apical of three-years of consecutive yearly gains. The S&P 500 hasn't fallen since slipping conscionable 6.2% successful 2018. All told, the S&P 500 astir doubled successful the past 5 years.

And that is owed to immoderate monolithic rises this twelvemonth by apical S&P 500 stocks. Already this year, 50 stocks successful the S&P 500, oregon a tenth, are up an awesome 50% oregon more. All told, much than 80% of S&P 500 companies roseate successful 2021.

But analysts are calling the extremity for present connected immoderate of these large gainers' runs.

Analysts Pull Back On Vaccine Champs Like Pfizer

There's nary mode to underappreciate the monolithic technological accomplishments of some Pfizer and Moderna this year. Both of the companies' vaccines are the gold standards successful the world successful combating Covid-19.

And the stocks, too, are remarkable. Shares of Pfizer are up a staggering 65% successful 2021. And Moderna is 1 of the apical stocks successful the S&P 500 this twelvemonth with a emergence of 165%. But analysts are reasoning the gains are baked in, and are calling for some stocks to beryllium little successful 12 months than they are now.

Pfizer has 1 of the astir skilled CEOs successful concern today. But analysts deliberation Pfizer shares should commercialized for 54.07 successful 12 months. If they're right, that's a diminution of much than 11%. That would besides erase the company's generous 2.7% dividend. There's immoderate cardinal crushed to recognize wherever analysts are coming from. Pfizer's nett is seen jumping astir 40% successful 2022. But analysts deliberation nett volition descent much than 20% successful 2023. And remember, Pfizer's banal terms by the extremity of 2022 volition beryllium pricing successful 2023 profit.

It's a akin communicative for Moderna. Analysts deliberation the banal volition beryllium worthy 271.13 a stock by the extremity of 2022, oregon astir 2% little than it is now. And nett trends look similar. Analysts deliberation nett volition driblet successful fractional successful 2023, aft rising much than 4% successful 2022.

Locking Up S&P 500 Technology Gains

S&P 500 exertion stocks won large successful 2021. So, it's not astonishing to spot shares of machine retention steadfast Seagate Technology soar astir 70% this year. But you mightiness privation to deliberation astir locking successful immoderate gains, if analysts are right.

Wall Street expects Seagate's banal to descend 1.2% implicit the adjacent 12 months to 104. Again, it's a communicative of moderating nett growth. Seagate's nett is lone seen rising astir 5% successful 2022. Keep successful caput the company's nett exploded by much than 70% successful 2021 — wholly justifying its 70% banal terms move. The stock, though, yields 2.7% helping to creaseless implicit immoderate banal terms skid. But it would inactive permission you with a nett summation of astir the aforesaid arsenic a 10-year Treasury astatine 1.4%.

It's not conscionable tech, though, wherever analysts deliberation immoderate S&P 500 apical stocks are owed to chill off. Shares of Big Cap 20 trucker Old Dominion are besides up much than 70% this year. Supply concatenation logjams helped assistance rates and request for shipping services. But analysts deliberation the banal is apt to descent 2.4% implicit the adjacent 12 months. Following a 53% leap successful nett successful 2021, net per stock maturation is besides seen cooling to conscionable 18% successful 2022.

It's imaginable analysts are dilatory to update targets and volition extremity up a dollar oregon 2 abbreviated connected their 12-month banal terms estimates. But these S&P 500 stocks are up truthful overmuch already, a just question is however overmuch of a summation you could expect again successful 2022.

Don't Expect Much From These Top S&P 500 Stocks

All are up much than 50% successful 2021, but analysts deliberation they volition beryllium little successful 12 months

Company Ticker Stock YTD % ch. Sector Implied downside to analysts' 12-month terms target
Pfizer (PFE) 65.8% Health Care -11.4%
Iron Mountain (IRM) 72.8 Real Estate -6.6
Moderna (MRNA) 164.6 Health Care -1.9
Arista Networks (ANET) 84.9 Information Technology -3.0
West Pharmaceutical Services (WST) 55.0 Health Care -3.2
Robert Half International (RHI) 69.7 Industrials -3.4
Old Dominion Freight Line (ODFL) 71.0 Industrials -2.4
Seagate Technology (STX) 69.1 Information Technology -1.1
Prologis (PLD) 61.9 Real Estate -0.3
 Sources: BofA, S&P Global Market Intelligence

Follow Matt Krantz connected Twitter @mattkrantz


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