The current bull market has been a remarkable one, with stocks soaring to new heights throughout the year. The surge in the market has been largely attributed to the artificial intelligence sector, with companies like Nvidia leading the way. Nvidia’s stock price has seen a staggering 176% increase this year, reflecting the overall bullish sentiment in the market.
Amidst this bullish trend, all three major stock market averages – the S & P 500, Dow Jones Industrial Average, and Nasdaq Composite – have reached record high closings. The S & P 500, Dow Jones Industrial Average, and Nasdaq Composite have respectively gained 15%, 3%, and 19% in 2024. This strong performance has instilled optimism among investors, with many believing that the market rally will continue to thrive in the future.
While the overall outlook for the stock market seems positive, there are certain stocks that stand out as potential losers. According to data from LSEG, CNBC Pro identified several stocks in the Nasdaq 100 that analysts predict will experience a decline of at least 5% in the near future. Nvidia, despite its impressive performance, is one of the stocks that analysts believe could face a selloff. Although the average analyst rating for Nvidia is a buy, the consensus price target suggests an 11% pullback from its current level.
Lam Research, a semiconductor equipment manufacturer, is another stock that has caught the attention of market analysts. The company’s stock price has surged by 34% this year, fueled by a recent announcement of a $10 billion share buyback plan and a 10-for-1 stock split. Other semiconductor stocks like KLA, Qualcomm, and Texas Instruments are also on the list of potential losers, with gains of 43%, 48%, and 13% respectively.
While the current bull market rally has been impressive, there are stocks that could experience a downturn in the near future. It is essential for investors to be aware of the risks associated with individual stocks, especially those that are expected to face a pullback. By staying informed and conducting thorough research, investors can make more informed decisions and navigate the complexities of the ever-changing stock market landscape.