Tags: goldman | stocks | sell | apple | investors | unload

Goldman: Investors Must Be Wary of Apple, 5 Other Stocks

Goldman: Investors Must Be Wary of Apple, 5 Other Stocks
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By    |   Wednesday, 25 November 2020 01:16 PM

Goldman Sachs recently suggested to savvy investors a half-dozen stocks that should be purged from portfolios in 2021.

Goldman highlighted stocks that it has a sell rating on, and which have at least 10% total return downside, CNBC reported, citing analysts.

Goldman also believes each company carries the risk of an earnings miss, with the firm’s 2021 earnings estimates at least 5% below consensus estimates, CNBC said.

Apple (AAPL) is one of the stocks on Goldman’s list, and the firm’s "sell" rating on the tech giant is one of just four sell ratings on the Street out of 41 firms, CNBC reported, citing FactSet.

Goldman expects Apple to earn $3.41 per share in 2021, below the Street consensus estimate of $3.96, CNBC said.

“In our opinion Apple continues to show strong execution, but we see fundamentals more likely to disappoint in 2021 as the long anticipated 5G iPhone fails to meet optimistic consensus expectations and Services revenue growth slows,” Goldman said in a recent note to clients following Apple’s fourth quarter earnings results.

Goldman listed five other stocks investors should shy away from in the coming year:

  1. Beyond Meat (BYND)
  2. Intel (INTC)
  3. The Wendy's Company (WEN)
  4. Seagate Technology (STX)
  5. Qualcomm (QCOM)

Goldman isn't the only entity to urge investors to exercise exteme caution in the current market environment.

Technology and Internet stocks have been among the standout performers in 2020, but the scale of their advance has underlined concerns over valuation, suggesting a risk if companies aren’t able to live up to the robust optimism investors have, Bloomberg said.

Sentiment has grown ever-more bullish of late, a classic contrarian indicator that analysts said should signal caution. Tech stocks, where valuations have long been in question, have been a focus of this risk.

“There’s a lot of complacency,” said Ted Mortonson, technology desk sector strategist at Baird. “On a scale of 1-10, complacency is at a nine, and meanwhile the fear index is zero.”

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Goldman Sachs recently suggested to savvy investors a half-dozen stocks that should be purged from portfolios in 2021.
goldman, stocks, sell, apple, investors, unload
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2020-16-25
Wednesday, 25 November 2020 01:16 PM
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