3 Struggling Stocks That Are Overdue for Steep Downgrades
Analyst price targets often change as new data changes their projections. The danger in relying on price targets is that the analysis they are based on can become outdated. When the market leads to a steep drop in a stock's price, it can appear to have lots of upside because those price targets have yet to be updated to reflect the new change catalyst. Buying solely on a price target can end up being a costly assumption.
Three stocks with potentially overly optimistic price targets from analysts at the moment are Walgreens Boots Alliance (NASDAQ: WBA), Rivian Automotive (NASDAQ: RIVN), and United Airlines Holdings (NASDAQ: UAL). Let's see why these three stocks are overdue for analyst downgrades.
Pharmacy retailer Walgreens Boots Alliance is struggling with profitability, its dividend yield is incredibly high at 8.75%, and the company is also balancing a growth strategy in launching primary clinics. Those are a lot of balls in the air that the company needs to juggle, and it isn't doing a great job of that right now.
Source Fool.com
United Continental Holdings Stock
The stock is one of the favorites of our community with 24 Buy predictions and 2 Sell predictions.
As a result the target price of 66 € shows a positive potential of 35.29% compared to the current price of 48.79 € for United Continental Holdings.
