GOLDMAN SACHS: These 11 stocks are going to get crushed

Mario Tama/GettyTraders stand on the floor of the New York Stock Exchange, moments after the U.S. Federal Reserve raised U.S. interest rates February 2, 2005 in New York City. Federal Reserve Chairman Alan Greenspan boosted short-term interest rates by a quarter-point today.
  • 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

Markets InsiderJuniper Networks shares.

Ticker: JNPR

Sector: Technology

2018 performance: -6%

Current price: $US27.52

Downside to target: -25.7%

Source: Goldman Sachs


Church & Dwight

Markets InsiderChurch & Dwight shares.

Ticker: Church & Dwight

Sector: Consumer staples

2018 performance: +33%

Current price: $US65.88

Downside to target: -25.5%

Source: Goldman Sachs


Clorox

Markets InsiderClorox shares.

Ticker: CLX

Sector: Consumer staples

2018 performance: +6%

Current price: $US154.88

Downside to target: -25.4%

Source: Goldman Sachs


Realty Income

Markets InsiderRealty Income shares.

Ticker: O

Sector: Real estate

2018 performance: +11%

Current price: $US62.60

Downside to target: -23.9%

Source: Goldman Sachs


Ventas

Markets InsiderVentas shares.

Ticker: VTR

Sector: Real estate

2018 performance: -2%

Current price: $US57.92

Downside to target: -19.8%

Source: Goldman Sachs


Hershey

Markets InsiderHershey shares.

Ticker: HSY

Sector: Consumer staples

2018 performance: -4%

Current price: $US105.41

Downside to target: -19.8%

Source: Goldman Sachs


SCANA

Markets InsiderScana shares.

Ticker: SCG

Sector: Utilities

2018 performance: +23%

Current price: $US47.80

Downside to target: -18.4%

Source: Goldman Sachs


Duke Energy

Markets InsiderDuke Energy shares.

Ticker: DUK

Sector: Energy

2018 performance: 3.7%

Current price: $US85.01

Downside to target: -15.4%

Source: Goldman Sachs


Equity Residential

Markets InsiderEquity Residential shares.

Ticker: EQR

Sector: Real Estate

2018 performance: +3%

Current price: $US65.10

Downside to target: -15.2%

Source: Goldman Sachs


McCormick & Co.

Markets InsiderMcCormick shares.

Ticker: MKC

Sector: Consumer staples

2018 performance: +36.5%

Current price: $US137.84

Downside to target: -14.5%

Source: Goldman Sachs


HCP

Markets InsiderHCP shares.

Ticker: HCP

Sector: Real estate

2018 performance: 7.8%

Current price: $US28.30

Downside to target: -14.1%

Source: Goldman Sachs


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