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These stocks have gone too far, too fast during this rally and analysts expect them to fall

Chaim Potok by Chaim Potok
November 28, 2023
in Investing
These stocks have gone too far, too fast during this rally and analysts expect them to fall
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A strong November rally has allowed some stocks on Wall Street to get ahead of themselves. With the final trading day of the month on Thursday, all three major indexes are on pace to end November higher. The S & P 500 is on track to conclude the month up by more than 8%, while the Dow Jones Industrial Average and Nasdaq Composite are headed for gains of 7% and 11%, respectively. The rise in stocks throughout November has been underpinned by softer-than-expected inflation data that has fueled investor hopes for an end to the Federal Reserve’s monetary policy tightening campaign. However, the favorable backdrop for Wall Street may have fueled unsustainable gains for a slate of stocks. Using the CNBC Pro Stock Screener tool , we scanned for stocks that have outpaced the recent rally and could be set for a pullback that meet the following criteria: They have surpassed their 12-month consensus analyst price target in November. Share gains have outpaced the overall market gain of 11% in the past month. Names are constituents of the S & P 500. Price data below is current as of Monday’s close. Shares of Elon Musk’s Tesla have climbed nearly 14% over the past month, and analysts forecast a roughly 5% decline to bring the stock back to their consensus forecast. TSLA 1M mountain Tesla stock. The company plans to begin delivering the long-awaited Cybertruck on Thursday, but Musk has already signaled caution toward the ability to mass produce the vehicle. On an investor call last month, the billionaire said he wanted to “temper expectations for Cybertruck.” Streaming giant Netflix , meanwhile, has seen its stock soar more than 20% over the past month. Analysts surveyed expect shares to fall about 3% to meet their consensus price target. NFLX 1M mountain Netflix stock. The company has been on fire following a third-quarter report that saw stronger-than-expected subscriber growth as well as success with its ad-supported service. The company also announced plans to raise the price of its basic and premium subscription services. Chipmaker Intel has outdone its peers on the list in November, with analysts expecting shares to fall 16% to be in line with consensus forecasts. Intel stock has climbed more than 24% overall in the past month. INTC 1M mountain Intel stock. Intel surpassed Wall Street estimates for third-quarter earnings at the end of October, which helped fuel a strong rally for the stock. CEO Pat Gelsinger recently told analysts that the company plans to cut roughly $3 billion in costs this year. Other names that could be due for a slide after a spate of outperformance include travel bookings site Expedia , telecom real estate investment trust Crown Castle and consumer goods giant Clorox .



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