Twitter, Deere And Other Stocks To Unload For 2014

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The Dow Jones Industrial Average is up about 20 percent year to date, and the S&P 500 has gained even more in that time. Even as the markets continue to challenge new highs, investors and analysts are positioning themselves for the end of the year and for 2014. According to Wall Street analysts, it may be a good time to consider shedding (maybe even shorting) shares of
Deere & Co.DE
,
Hewlett-PackardHPQ
,
Tesla MotorsTSLA
and
TwitterTWTR
. Below we take a look at how these three stocks have fared and what analysts in general expect from them.
Deere & Co.
This maker of agriculture and construction heavy equipment posted record earnings and offered optimistic guidance in November. It sports a market capitalization of more than $31 billion. Its return on equity is more than 43 percent, and its long-term earnings per share (EPS) growth forecast is about eight percent. The consensus recommendation of the 21 analysts surveyed by Thomson/First Call is to hold shares, and it has been for at least three months. The mean price target, or where analysts expect the share price to go, is only marginally higher than the current share price. UBS recommends selling shares and has a price target below the current share price. Shares have traded mostly between $81 and $85 since June. The share price is down more than four percent year to date. Over the past six months, the stock has underperformed not only the broader markets, but also competitor
CaterpillarCAT
.
See also:Who Would You Rather Be, Bill Gates Or Warren Buffett?Hewlett-Packard
There has been speculation over whether this Palo Alto-based PC and printer maker has turned around since its recent better-than-expected earnings report. Its market cap is more than $52 billion, and the return on equity is more than 20 percent. But the long-term EPS growth forecast is only about six percent. For the past three months, the consensus recommendation of analysts has been to hold shares. The share price is higher than their mean price target, suggesting there is no upside potential at this time. Deutsche Bank sees the stock as overvalued, and its price target is one of the lowest on Wall Street. The share price has popped about eight percent in the past seek and is again approaching the 52-week high set in August. Over the past six months, this stock has outperformed both larger competitor
IBMIBM
and the Dow Jones Industrial Average.
Tesla Motors
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Reported car fires have been the recent concern facing this Palo Alto, California-based maker of luxury electric vehicles. And short interest in the almost $15 billion market cap company is almost 29 percent of the float. Its long-term EPS growth forecast is nearly 19 percent, though. Of the 14 analysts surveyed, half recommend buying shares. The analysts see plenty of room for shares to run, as their mean price target is more than 22 percent higher than the current share price. However, Merrill Lynch believes shares are overvalued and its price target is the lowest on Wall Street. The share price has retreated more than 34 percent from the 52-week high back in September, though it is still up about 260 percent year to date. Over the past six months, Tesla Motors has outperformed the likes of
General MotorsGM
and
ToyotaTM
, as well as the broader markets.
See also:Tesla Hands Model S Keys Over To Car-Guy LawmakersTwitter
Twitter has been trading for about a month and the quiet period has ended with Merrill Lynch initiating coverage at Underperform. The market cap of this San Francisco-based social media company is more than $22 billion. The long-term EPS growth forecast is more than 72 percent and the return equity is more than 155 percent. The consensus recommendation of the 16 analysts polled is to hold Twitter shares. The current share price is greater than their mean price target, meaning they see no upside at this time. The Merrill Lynch price target is less than the consensus one, as well as lower than shares have traded thus far. The share price has retreated more than seven percent since the initial public offering in early November. The stock has underperformed larger competitor
FacebookFB
and the S&P 500 in that time.
At the time of this writing, the author had no position in the mentioned equities.
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