Investors looking to lower their tax bill may want to take advantage of a tried-and-true strategy that involves selling the year’s losing names. Tax-loss harvesting is a common year-end method used by investors and money managers to minimize taxes. The practice involves selling off losing positions to offset taxes on realized capital gains incurred on winning investments. To find the names worth selling, CNBC Pro used its stock screening tool to hunt for names with a market cap exceeding $1 billion. These stocks also have year-to-date losses. Average trading volume for each of the names exceeds 500,000 shares, and their respective price targets imply 5% downside from current levels. Here are the names that made the cut. Data is current as of midday Friday: Of the names in the screen, shares of Fastly have seen the most significant losses year to date. The cloud platform company’s stock has lost roughly 57% this year, with the average price target implying that shares could fall about 18%. D.A. Davidson analyst Rudy Kessinger is neutral on the name. Back in August, he slashed his price target to $5.50 from $8.50, noting that Fastly took “a meat cleaver to CY24 outlook.” “FSLY added just 5 net new customers in Q2 vs. 47 last qtr., though the company added 24 $100K+ customers in Q2 vs. a loss of 1 last qtr.,” he wrote. Children’s apparel maker Carter’s also made the list, with shares down 9% over the past 12 months. Analysts see more than 10% downside ahead. This summer, the company issued weak full-year guidance on the top and bottom lines. Scrubs maker Figs also met the screener’s criteria. Shares are down more than 3% in 2024, as of Friday, with analyst consensus price targets calling for a 10% slide. Elsewhere, real estate investment company Kennedy-Wilson could experience the most significant downside of the group, with the consensus price target implying shares could fall another 22%. The stock is already down nearly 13% in 2024 as of Friday. Arbor Realty Trust and Leggett & Platt are also among the names that made the list.
