The first half of 2022 was very turbulent; Due to the high inflation rates and the concomitant rise in interest rates, the collapse of the crypto-currency and the Russian war against Ukraine.
It turns out that the only safe haven is the dollar and crude oil, as the stock market was the biggest loser under global conditions during the first half of the year.
At a time when basic consumer goods are safe from the fluctuations in global financial markets – especially amid fears of an economic recession – there are unnecessary consumer stocks that could be hit due to the tendency of consumers to adjust their budgets, and prioritize needs over desires. .
In this report, we monitor the top 10 stocks of luxury products, luxury and non-essential consumer goods that analysts tended to lower their target price and lower their recommendation, according to InsiderMonkey data.
Number of hedge fund holders: 80
Tesla share is likely to fall by about 45% after losing part of its market share, hitting the challenges facing electric car giant Tesla in deliveries, and on July 5, Ryan Brinkman – analyst at JPMorgan – the target price for Tesla drops from $ 395 to $ 385, with a recommendation to reduce the relative weight of the stock.
By the end of the first quarter of this year, the number of Tesla hedge fund holders had dropped to 80, compared to 91 in the previous quarter. Ark Invest is one of the company’s most prominent shareholders, with 1.6 million shares worth $ 1.7 billion.
2- Carnival Corporation
Number of hedge fund holders: 32
The shares of Carnival Corporation, one of the largest operators of passenger ships in the world, have been under selling pressure since the beginning of the year and have fallen by about 60%.
On July 4, HSBC analyst Ali Naqvi downgraded the company and set a target price for the stock at $ 7.7, after publishing the company’s financial statements for the second quarter.
By the end of the first quarter of the year, the company’s hedge funds had declined; To reach 32 funds, compared to 33 funds in the previous quarter.
3- Sally Beauty
Number of hedge fund holders: 17
Sally Beauty is an American international company specializing in the retail and distribution of professional beauty supplies. Since the beginning of the year, the company’s share has fallen by 35%.
The risks to the company’s sales and profits are expected to rise in light of the impact of inflation and preference for spending on groceries and fuel. Olivia Tong, an analyst at Raymond James, downgraded Sally Beauty Holdings’ rating late last month. . without setting a target price.
In June, a Morgan Stanley analyst lowered the company’s price target from $ 19 to $ 12.
By the end of the first quarter of 2022, the number of the company’s hedge funds had decreased to 17, compared to 19 in the previous quarter.
Number of hedge fund holders: 47
Altria is one of the largest manufacturers and marketers of tobacco and cigarettes, and on June 29, Barclays analyst Gaurav Jain downgraded the company’s stock by weighing it relative to its target price of $ 53 to $ 36.
By the end of the first quarter of the year, the company was part of 47 public hedge fund portfolios, compared to 39 in the last quarter of last year.
5- Tyson Foods
Number of hedge fund holders: 45
This month, Michael Lavery, an analyst at Piper Sandler, lowered the target price for Taiwan Foods, which operates in the food industry, from $ 85 to $ 79, while confirming the stock’s underweight rating.
6- Boston Bear Company
Number of hedge fund holders: 22
Boston Beer, the American beer company, is one of the consumer stocks losing value due to the recession, as the share price fell by about 41%.
At the end of last month, Goldman Sachs analyst Bonnie Herzog lowered the price target to $ 318 from $ 380.
7-Walgreens Boots Alliance
Number of hedge fund holders: 38
Since the beginning of the year, the share of the General Company in the field of pharmacy, health and beauty products has fallen by more than 27%.
Recently, Ricky Goldwasser, an analyst at Morgan Stanley, lowered the target price for the stock to $ 43, recommending a reduction in the relative weight of the stock.
8- Bed Bad and Beyond
Number of hedge fund holders: 15
Earlier this month, Standard & Poor’s downgraded the company’s credit rating to B- from B +.
Anthony Chucumba, an analyst at Loeb Capital, also lowered the company’s target price from $ 5 to $ 1 and upheld his recommendation to sell the stock.
Number of hedge fund holders: 21
With the recession coming, people are likely to spend money on necessities and cut back on luxuries like parties and alcohol, which does not bode well for companies like Diageo.
On June 29, Deutsche Bank analyst Mitch Collette downgraded Diageo to sell and set a target price of £ 3.23K versus £ 4.05K.
Number of hedge fund holders: 23
The company’s share has fallen by 16% since the beginning of the year, and David Hayes, analyst at Societe Generale, lowered the company’s rating from buy to sell on May 16, lowering the target price to £ 3,400,000 from 4 300 thousand pounds.