It’s rabbit season, it’s duck season, it’s earnings season! And as earnings season picks up momentum, Goldman Sachs is cautioning investors to avoid eight stocks it believes face downside risk. The firm issued a note highlighting companies it rates as Sell, with price targets implying at least 5% downside and a risk of missing earnings. According to Goldman’s models, the 2025 earnings estimates for these names are at least 2% below the consensus.
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The list includes a few notable names and might contradict the overall Street’s sentiment: Super Micro Computer (SMCI), American Airlines Group (AAL), eBay Inc (EBAY), Victoria’s Secret & Co (VSCO), Hershey Co (HSY), Grocery Outlet Holding (GO), Lazard Ltd (LAZ), and IMAX Corporation (IMAX).
What Does GS Say?
Super Micro Computer is the most bearish call on the list, with Goldman estimating 51% downside. While the company has been a standout performer in 2025 in terms of AI-related demand, with the stock rising nearly 75% year-to-date, Goldman’s lower earnings estimates and valuation concerns weigh on its outlook.
American Airlines Group, which has been experiencing a rough 2025 so far, with AAL stock declining 30% year-to-date, is also flagged with a projected 29% downside. According to Goldman Sachs, fuel costs and potential weakness in discretionary travel spending may pressure the carrier’s earnings outlook.
eBay Inc., up 25% year-to-date, is considered vulnerable to macroeconomic shifts and tariff uncertainty. Goldman expects 29% downside. Analyst sentiment on TipRanks shows a Moderate Buy consensus, with the average price target of $70, implying an 8.39% downside.
Victoria’s Secret & Co has already dropped 54% in 2025. However, Goldman Sachs doesn’t see the negative momentum changing, and projects another 14% downside, citing margin pressure and recession-sensitive product lines. The Street’s sentiment points to a Hold consensus.
Hershey Co. is another famous name on the list with a projected 10% decline. Shares slipped after the announcement that Kirk Tanner will replace Michele Buck as CEO in August. TipRanks’ analysts’ consensus points to a Hold position and 0.71% downside.
The remaining names – Grocery Outlet Holding, Lazard Ltd, and IMAX Corporation – are all seen with potential downside of 11% to 43% based on Goldman’s targets.