11 Stocks to Sell That Analysts Are Souring On

Stocks have started to crater as the novel coronavirus spread to Europe and other parts of Asia.

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Stocks have started to crater as the novel coronavirus spread to Europe and other parts of Asia. Fortunately, Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.B (opens in new tab)), was on hand Feb. 24, telling viewers on CNBC that folks should never sell based on headlines.

As always, the world's greatest investor dispensed excellent advice. Indiscriminate selling is too often a good way to lock in losses or forgo gains.

But that doesn't mean that investors shouldn't be looking for stocks to sell. They should, as part of a natural pruning to weed out lousy holdings and free up cash for better opportunities. To that end, some stocks looked like serious duds even before the Dow Jones Industrial Average tumbled almost a thousand points.

To find stocks Wall Street is most bearish on, we scoured the Center for Research in Securities Prices' (CRSP) total U.S. market index for companies with a minimum market capitalization of $500 million. Our stocks also had to have coverage by at least three analysts. Next, we turned to S&P Global Market Intelligence's recommendation roundup.

S&P Global surveys analysts' stock calls and scores them on a five-point scale, where 1.0 equals a Strong Buy and 5.0 is a Strong Sell. Scores between 3.5 and 2.5 translate into a Hold recommendation. Any score higher than 3.5 means that analysts, on average, believe the stock should be sold. The closer a score gets to 5.0, the higher their collective conviction.

Here are 11 stocks to sell that rank among the worst names listed on any major U.S. exchange. If you're still holding any of the names after the latest market selloff, you might want to rethink your commitment.

Share prices, dividend yields, price targets, analysts’ ratings and other data are courtesy of S&P Global Market Intelligence as of Feb. 21, unless otherwise noted. Stocks are listed by analysts’ average recommendation from best to worst.

Dan Burrows
Contributing Writer, Kiplinger.com