S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead

3 Downgraded Stocks You Might Want To Buy 

Key Points

  • Tesla is the most downgraded stock the analyst are holding and supporting. 
  • Microsoft is among the most downgraded names, rated a Moderate Buy with 10% of upside. 
  • SentinelOne is downgraded to Moderate Buy and has more than 30% of upside potential. 
  • 5 stocks we like better than Microsoft

downgraded stocks to buy

Marketbeat’s analyst tracking tools are a great way to hunt down potential investments or trades, as the case may be. Analyst activity has a profound impact on market dynamics so an uptrend or downtrend in their sentiment is a telling sign. Today’s list includes 3 of the most downgraded stocks, but these are names that investors should buy, not sell. Tesla and Microsoft have seen a reboot in their outlooks that has led to their downgrades while fear of slowing and competition have analysts shying away from SentinelOne.

In all 3 cases, there is ample evidence their respective industries are strong and, individually, amply reason to be attracted to the company and stock. Microsoft and Tesla are both innovative leaders in their fields; Microsoft at least is a blue chip tech, both are mega-cap tech, and Sentinel One is a hyper-growth story within cybersecurity. 

Tesla Is The Most Downgraded Stock For Q1? 

Tesla NASDAQ: TSLA is listed as Marketbeat.com’s most downgraded stock for February, but the worst that can be said of the data is that it was mixed and came with many price target reductions. There are 37 analysts with current ratings on the stock, and at least 31 of them came out in the last 90 days. The takeaway, however, is that sentiment is firming from a weak Hold to a firm Hold verging on Moderate Buy with a price target that is also moving higher. The consensus price target is up compared to last month and last quarter and is helping the stock to put in a bottom. The consensus assumes a 13% upside from the $195 level where support appears strong. 

The TSLA chart is not without its negatives, but the near-term action is promising. The stock returned to the $180 level, tested support, and support was confirmed with a rebound. The market is now tracing a tight Head & Shoulders/Vee-Bottom that will be confirmed when price action moves above $215 toward the analysts' average target. Tesla next reports in mid-April when it is expected to report YOY growth but a sequential downtick in business.  

Microsoft, Downgraded To Moderate Buy 

Microsoft NASDAQ: MSFT is another downgraded name to take with a grain of salt. The downgrades have it 4th position regarding the pace of activity but this is to Moderate Buy from Strong Buy. Marketbeat.com is tracking 32 analysts with current reports, 19 of which came out over the last quarter, and the worst that can be said is it received 1 downgrade to sell which is an outlier. All other ratings are at least a Hold and the consensus price target, which is about 10% above recent action, is trending higher after hitting bottom late in 2022. 

Microsoft isn’t a value trading at 27X its earnings, which is consistent for blue chip tech like this. Apple NASDAQ: AAPL trades a handle or so lower but also pays a significantly lower dividend. Neither is large, Microsoft pays about 1.1% at these price levels, but it is an incredibly safe and growing payout investors can rely on. 

SentinelOne, Down But Not Out 

SentinelOne NASDAQ: S has been trending lower from the post-IPO peak on fear of slowing growth compounded by fear of slowing in the cybersecurity industry. Names from Zscaler NASDAQ: ZS to Palo Alto Networks NASDAQ: PANW have been under pressure for the same reasons, and they’ve all reported OK if not good results and outlook. This has the group bottoming, and SentinelOne should be included despite the recent trend in analyst sentiment. 

The analysts; Marketbeat is tracking 26 analysts with ratings on SentinelOne, 19 of which are less than 90 days old, and it is ranked 5th most downgraded stock. Like Microsoft, this is a downgrade to Moderate Buy from a more solid Buy rating in 2022. The takeaway is that the price target has been trending lower but appears to have bottomed or begun to bottom. SentinelOne reports results next week and may spur the analysts to act in support of that bottom should results echo news from peers. 

→ Gold Could Be Heading for Record Highs - But How to Play It? (From Edge On The Street) (Ad)

Should you invest $1,000 in Microsoft right now?

Before you consider Microsoft, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Microsoft wasn't on the list.

While Microsoft currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

13 Stocks Institutional Investors Won't Stop Buying Cover

Which stocks are major institutional investors including hedge funds and endowments buying in today's market? Click the link below and we'll send you MarketBeat's list of thirteen stocks that institutional investors are buying up as quickly as they can.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Tesla (TSLA)
4.696 of 5 stars
$194.77+0.5%N/A45.19Hold$219.89
Microsoft (MSFT)
4.8567 of 5 stars
$402.18-0.2%0.75%36.36Moderate Buy$411.06
Apple (AAPL)
4.9101 of 5 stars
$182.32+0.4%0.53%28.40Moderate Buy$205.27
SentinelOne (S)
1.0083 of 5 stars
$25.61-12.2%N/A-20.48Moderate Buy$24.02
Palo Alto Networks (PANW)
4.8774 of 5 stars
$261.97-28.4%N/A40.93Moderate Buy$312.11
Zscaler (ZS)
3.5261 of 5 stars
$213.92-14.1%N/A-184.41Moderate Buy$216.34
Microsoft (MSFT)
4.8567 of 5 stars
$402.18-0.2%0.75%36.36Moderate Buy$411.06
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


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