Stocks worldwide have taken a beating this year, and major indexes remain deep in negative territory. As investors weigh whether to sell or stay invested, CNBC Pro screened almost 1,500 large and mid-cap global stocks and found a number of major companies with sell or underweight ratings. Seven of the stocks — all part of the MSCI World Index — have analysts’ price targets below their current share price, according to FactSet data. Equity analysts at investment banks and research firms rate stocks as sell or underweight if they believe the shares will perform poorly over the next 12 months. Let’s take a look at the two U.S. stocks that appeared on the screen: AMC Entertainment Shares in the world’s largest movie theater company, AMC , have fallen by about 60% to $6 this year. But there’s more pain to come , according to analysts. Analysts’ median price target for AMC is 57.5% below the current share price, FactSet data shows. MKM Partners analyst Eric Handler expects shares in the company to fall to $0.50 as a result of its capital structure and wider strategy. Wedbush Securities analyst Alicia Reese downgraded AMC from $4 to $2 but believes the company has long-term potential at her price target. “We believe that debt repayment and an investment to accelerate theater upgrades and footprint expansion in EMEA would make AMC a more attractive long-term investment,” Reese wrote to clients on Aug. 23. Clorox Analysts’ average price target on Clorox is just 1.4% below the current share price, but 11 out of 14 analysts covering the stock give it a sell or underweight rating. Earlier this year, company CEO Linda Rendle told CNBC that the company’s products, which include Brita water filters and Burt’s Bees, are ” household essentials ” and it can withstand high inflation and tough economic times. However, analysts at Atlantic Equities suggest the company faces downside risks from a rising dollar. “CLX exposed to foreign currency translation (most notably Canadian Dollar, Argentinian Peso, Mexican Peso), and therefore further appreciation in the USD would negatively impact revenue and earnings estimates,” they said. Global stocks The screen also included three Japanese-based companies: Tepco (Tokyo Electric Power Company), Odakyu Electric Railway and drinks maker Ito En . The final two stocks on the list were German energy giant Uniper — which the German government has agreed to nationalize — and Australia’s Fortescue Metals . Three stocks — AMERCO, Isracard, and Loews — were excluded from our filter due to a lack of analyst ratings or price targets within the past 100 days. For those looking at what stocks to buy in the current environment, CNBC earlier this month screened for stocks with an average price target upside of 20% or more and an earnings growth forecast of at least 10% this year.
Sumber: www.cnbc.com
