5 Stocks Analysts Are Downgrading Right Now Farooq Thu, November 12, 2026 at 3:56 PM EST 9 min read ^GSPC -0.35% ^IXIC -0.39% SHEL +0.72% AVPT -1.03% TREX -2.71% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Stocks slid again on Tuesday after a hotter-than-expected inflation report fed bets on higher interest rates, and all three major indexes finished lower. The Dow fell 0.30% to 52,231.89, the S&P 500 lost 0.38% to 7,520.93, and the Nasdaq Composite dropped 0.74% to 25,065.87.
Government data showed consumer prices rose 0.4% in October, the third straight monthly gain of at least that size, against the 0.3% economists expected. Core prices rose 0.3%, ahead of a 0.2% forecast, and traders spent the session weighing how many more rate increases may be coming.
Federal Reserve Governor Christopher Waller said the central bank should raise rates in December and consider a half-point increase, while Dallas Federal Reserve President Lorie Logan said at least two more quarter-point hikes are needed. Traders now see an 84% chance of a quarter-point move next month and a 15% chance of a half-point increase.
Jason Ware, chief investment officer at Albion Financial Group, told Reuters that investors are spooked by the possibility of a 50 basis point hike. That worry landed on a market that had already taken a beating: the Nasdaq closed nearly 12% below its October peak last week, and the S&P 500 sank 4.4% in a single session, its worst day since April 2025. For the other side of that debate, see our list of oversold AI stocks where Wall Street analysts see 50%+ upside.
A downgrade happens when an analyst lowers a stock's rating, such as moving it from buy to hold or from hold to sell. It signals that the firm sees weaker prospects ahead, and investors often use these moves to flag stocks that may be at risk. You might also be interested in reading our piece on the best affordable stocks to buy according to Wall Street analysts.
Skyler Weinand, chief investment officer at Regan Capital, said stocks have seen a heavy rotation out of AI-related names and into defensive sectors such as healthcare. Technology took the sharpest hit. Last week the S&P 500 technology sector fell 7.3% and the Philadelphia semiconductor index dropped more than 12% as fears of a data-center slowdown spread after the midterm elections.
Oxford Economics expects the Fed to raise rates in December and again in March, while Kansas City Fed President Jeff Schmid described policy as still accommodative.
We shared the expanded list of 10 Stocks Analysts Are Downgrading Right Now here. You can find the top 5 stocks below.
To compile this list, we reviewed analyst rating downgrades announced on Tuesday, November 10, 2026, as reported by financial news sites. We ranked these stocks in descending order of their average upside potential, based on analysts' average price target, as of November 11. We also list each stock's number of hedge fund holders as of Q2 2026, from our database of 1,006 hedge funds.
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Market Cap: $278.71 billion
Average Upside Potential: 14%
Number of Hedge Fund Holders: 49
Grupo Santander downgraded Shell to Neutral from Outperform on November 10 and trimmed its price target to 4,100 pence from 4,150.
Investors are watching oil prices, which have eased on hopes that the Iran war is nearing an end. Chief Financial Officer Sinead Gorman told analysts on the third-quarter call that October refining margins had softened from the quarter's level, and she warned that elevated freight costs could squeeze realized margins in the fourth quarter.
Shell runs oil and gas production and refining. Its third-quarter adjusted earnings were $10.8 billion, up from $9.8 billion in the second quarter, on record refining margins of $42 a barrel, and free cash flow was $16.3 billion, down from $17.5 billion. It lowered full-year capital spending guidance to $23 billion to $25 billion. The company announced a $5 billion share buyback, took a final investment decision on LNG Canada Phase 2, and ended the quarter with net debt of $39.7 billion. It reports fourth-quarter results on February 4, 2027. We asked whether the energy giant is a buy in our earlier analysis of why investors are watching Shell.
Market Cap: $3.51 billion
Average Upside Potential: 14%
Number of Hedge Fund Holders: 37
Morgan Stanley downgraded AvePoint to Equal Weight from Overweight on November 10.
AvePoint calls itself the AI Trust Company and sells software that helps companies govern their data and AI, largely around Microsoft's cloud. On the day of the downgrade it announced a deeper Microsoft partnership to help enterprises deploy and govern AI. Investor attention has centered on margins. Third-quarter non-GAAP operating margin slipped to 16.8% from 22.0%, and non-GAAP operating income fell to $22.0 million from $24.1 million, though GAAP operating margin rose to 8.7% from 7.4%, and earnings of $0.08 a share missed the $0.09 consensus, even though total revenue rose 19% to $131.1 million, ahead of the $129.39 million analysts expected.
Annual recurring revenue reached $495.1 million, up 27%, SaaS revenue rose 26% to $105.5 million, and customers paying more than $100,000 rose 28% to 976. Management guided full-year revenue growth of about 22% at the midpoint, and the company ended the quarter with $418.3 million in cash and short-term investments. We examined the margin question in our piece on why the adjusted margin did not follow ARR higher.
Market Cap: $5.56 billion
Average Upside Potential: 13%
Number of Hedge Fund Holders: 45
D.A. Davidson downgraded Trex to Neutral from Buy on November 10 and kept its price target at $55. The firm worries that the inventory distributors stocked in the second half of 2026 is adding more to sales than investors realize, which raises the risk for 2027.
Trex makes wood-alternative composite decking and railing. Third-quarter sales rose 26% to $360 million, the second record quarter in a row, and about $30 million of that came from distributors stocking up. Excluding that, management put underlying demand growth near 15%. Adjusted gross margin fell to 36.9% from 41% a year earlier because of freight, labor inefficiencies and higher depreciation, though free cash flow stayed healthy. Trex raised its full-year sales guidance to a range of $1.296 billion to $1.306 billion, and it has not offered 2027 guidance. Net income was $52 million, or $0.52 a share, against $0.48 a year earlier, and fourth-quarter sales guidance is $175 million to $185 million. The Arkansas plant is on schedule to operate at 50% capacity by year-end. The shares jumped 14.3% on the day of the report and gave some of it back after the downgrade.
Market Cap: $480.73 billion
Average Upside Potential: 0%
Number of Hedge Fund Holders: 104
Freedom Broker analyst Georgy Vashchenko downgraded Costco to Hold from Buy on November 10 and raised his price target to $1,050 from $1,010. The stock trades at 52.18 times earnings, a premium few retailers command.
Costco sells groceries and goods to members at 943 warehouses in the US and abroad. October net sales rose 12.6% to $24.50 billion, comparable sales excluding gasoline prices and currency swings rose 7.3% across the company and 8.1% in the US, traffic rose 4.1% worldwide, and digitally enabled sales rose 22.6% excluding currency. Sales for the first nine weeks of the fiscal year rose 12.8% to $54.52 billion. After the market closed on the day of the call, the company announced a special dividend of $30 per share and renewed its buyback authorization through 2030.
Its fiscal fourth-quarter report in September beat estimates by $0.08 a share, with adjusted earnings of $6.60. Costco reports fiscal first-quarter results on December 10, and analysts expect adjusted earnings of $4.92 a share. We looked at one route to more growth in our piece on whether Costco's membership model can travel further overseas.
Market Cap: $4.30 billion
Average Upside Potential: -9%
Number of Hedge Fund Holders: 29
Loop Capital analyst Anthony Chukumba downgraded Academy Sports and Outdoors to Hold from Buy on November 10 and kept his price target at $69, which sits near the current share price. He says the stock's 42% gain already prices in his bullish outlook and he wants a better entry point, while staying upbeat on the business. Cantor Fitzgerald started coverage the same week with an Overweight rating and an $89 target.
Academy sells sports and fitness gear, camping equipment, hunting and fishing supplies, apparel and footwear through its stores and online. The shares trade near the top of a 52-week range of $41.29 to $71.29. In the second quarter ended August 1, 2026, net income rose 10% to $137.9 million and adjusted earnings rose 19.1% to $2.31 a share, and management raised its full-year EPS guidance.
Comparable sales fell 0.4%, and Chief Executive Officer Steve Lawrence said consumer spending remains pressured, particularly among lower-income households. The next report is expected in early December, and analysts are looking for about $1.32 a share. We covered the last round of target changes in our piece on target hikes after the second quarter.
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Click to continue reading and see the expanded list of 10 Stocks Analysts Are Downgrading Right Now.
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