10 Stocks Wall Street Analysts Hate Heading into 2023

Wall Street analysts don’t expect S&P 500 companies to blow the doors off with fourth-quarter earnings reports when they start coming out in January.

In fact, quite the opposite, like Slowing economic growthhigh interest rates, stubborn inflation has strategists Cautious about the stock market in 2023.

Fourth-quarter earnings for S&P 500 companies are expected to decline 2.8%, according to new data from FactSet. If that turns out to be true, it would be the first profit decline reported by the S&P 500 since the third quarter of 2020 when earnings fell 5.7%.

FactSet data shows that expectations are already beginning to turn downward for corporate earnings. Earnings per share estimates for the fourth quarter are down 6.1% since Sept. 30.

Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, US, December 14, 2022. REUTERS/Andrew Kelly

“A slowdown in nominal activity means lower earnings growth and downward pressure on margins,” he wrote. 22V search Founder Dennis DeBusschere in a client note. “At the same time, management sentiment towards forward earnings, as measured using the natural language processing tool Amenity, has turned extremely negative. The long-awaited drop in earnings has arrived.”

Despite a long list of reasons — among them the aforementioned weak earnings — to be cautious about stocks in the impending earnings season, analysts continue to remain bullish on their ratings.

There are 10,835 stock ratings in the S&P 500, according to FactSet. Of these 10,835 ratings, 55.3% are Buy ratings, 38.8% are Hold ratings, and 5.9% are Sell ratings.

But a few stocks in the S&P 500 have sell ratings — indicating that analysts don’t really care about these stories.

Companies such as Principal Financial Group and T.

So as investors look to recover from a challenging year in the markets, these are some of the names that Wall Street is least confident will help turn things around in your portfolio.