- Goldman Sachs’ equity strategy team has published its quarterly chart book detailing the final quarter of 2018, and what lies ahead for this year.
- Among its round-ups was a list of stocks trading at the highest premium to the firm’s price targets.
- Most of the names expected to fall the most can be found in two sectors: consumer staples and real estate.
Goldman Sachs’ equity strategy team just put together its quarterly chart book, detailing the brutal final quarter – and month – of 2018, and the firm’s outlook for this year.
The team, led by chief US equity strategist David Kostin, included a list of stocks with the most downside to the firm’s price targets.
In other words, the strategists compiled stocks trading at the highest premium to the firm’s price target, implying the stocks could fall sharply if the analysts are correct in their predictions.
Notably, of the 11 names Business Insider has listed below, most of the stocks are in the real estate or consumer staples sector. While the broader market posted a total return of -4% in 2018, real estate posted a total return of -2% in 2018, and consumer staples posted a total return of -8%.
Here's a breakdown of the stocks, in the order of largest implied drop to the smallest implied drop.
Juniper Networks
Ticker: JNPR
Sector: Technology
2018 performance: -6%
Current price: $27.52
Downside to target: -25.7%
Source: Goldman Sachs
Church & Dwight
Ticker: Church & Dwight
Sector: Consumer staples
2018 performance: +33%
Current price: $65.88
Downside to target: -25.5%
Source: Goldman Sachs
Clorox
Ticker: CLX
Sector: Consumer staples
2018 performance: +6%
Current price: $154.88
Downside to target: -25.4%
Source: Goldman Sachs
Realty Income
Ticker: O
Sector: Real estate
2018 performance: +11%
Current price: $62.60
Downside to target: -23.9%
Source: Goldman Sachs
Ventas
Ticker: VTR
Sector: Real estate
2018 performance: -2%
Current price: $57.92
Downside to target: -19.8%
Source: Goldman Sachs
Hershey
Ticker: HSY
Sector: Consumer staples
2018 performance: -4%
Current price: $105.41
Downside to target: -19.8%
Source: Goldman Sachs
SCANA
Ticker: SCG
Sector: Utilities
2018 performance: +23%
Current price: $47.80
Downside to target: -18.4%
Source: Goldman Sachs
Duke Energy
Ticker: DUK
Sector: Energy
2018 performance: 3.7%
Current price: $85.01
Downside to target: -15.4%
Source: Goldman Sachs
Equity Residential
Ticker: EQR
Sector: Real Estate
2018 performance: +3%
Current price: $65.10
Downside to target: -15.2%
Source: Goldman Sachs
McCormick & Co.
Ticker: MKC
Sector: Consumer staples
2018 performance: +36.5%
Current price: $137.84
Downside to target: -14.5%
Source: Goldman Sachs
HCP
Ticker: HCP
Sector: Real estate
2018 performance: 7.8%
Current price: $28.30
Downside to target: -14.1%
Source: Goldman Sachs
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