Stocks including investor-favorite Apple have most downside, Barclays says
The sell-off in popular U.S. stocks isn’t over yet, according to Barclays, which forecast that stocks such as Apple could take a huge hit in coming months. Amid the uncertainties across the market, one thing is certain: it’s now a stock picker’s world. President Donald Trump’s tariff policies and jobs data last week fueled concerns about inflation and a potentially softening economy, and led two major stock averages to see their worst weeks since September. The S & P 500 and Dow Jones Industrial Average each pulled back more than 2% last week, while the tech-heavy Nasdaq Composite shed more than 3% after ending Thursday in a correction , as recent earnings from several AI-related companies failed to top the most bullish expectations. Investors can anticipate further potential potholes in the market by looking at a few stocks Barclays thinks are no longer attractive. The investment bank highlighted a dozen stocks in its research coverage that it rates underweight and where it sees “significant potential downside from current levels.” Here are some of the stocks: Apple shares could fall almost 18%, using Barclays’ price target of $197. The stock fell for a second week, losing about 1.2% last week, and is down more than 4.5% year to date. Concerns have grown around how Trump administration tariffs could affect Apple, since the iPhone maker assembles most of its products in China. The president has imposed an additional 10% tariff on imports from China, effective last Tuesday, bringing the cumulative tariff to 20%. Cell phones, computers and electrical equipment are among the biggest imports from China. Another stock that Barclays analysts think could slump is Domino’s Pizza . Domino’s could be overvalued after its roughly 12.5% run this year, and may fall roughly 11%, based on the the bank’s price target. The pizza chain’s fourth-quarter report recently disappointed Wall Street expectations, and its U.S. same-store sales increased at slower pace than the consensus FactSet forecast. Online travel company TripAdvisor , down about 4% this year, has an additional 8% projected downside using Barclays’ 12month price target of $13. The Wall Street firm is similarly underweight on UPS and Garmin . UPS shares have had a particularly rough run with lower post-Covid package volumes and higher labor costs, losing more than 21% over the past year even in the midst of the 2024 bull market.
