Contrarian Calls: 7 Analyst ‘Sell' Ratings That Should Be ‘Buys'

Core Viewpoint - The article discusses contrarian analyst picks, suggesting that sometimes it may be beneficial to trade against expert recommendations, as expert predictions can often be inaccurate [1]. Group 1: Harmony Gold Mining (HMY) - Harmony Gold Mining has seen a significant increase in share value, gaining over 78%, outperforming the SPDR Gold Trust, which gained just over 5% [2]. - Analyst Catherine Cunningham from JPMorgan Chase rated HMY a "sell" with a price target of $3.20, indicating potential volatility [2]. - The article argues against this pessimism, citing a strong economy and job market as favorable conditions for HMY [3]. Group 2: Antero Midstream (AM) - Antero Midstream operates in the Appalachian Basin and is crucial for LNG and LPG exports [5]. - Despite a moderate sell rating from analysts with a price target of $14, the article suggests that the pessimism may be short-sighted, especially if global economic conditions improve [6]. - The potential for a shift in central bank policies could benefit the natural gas sector, making AM a contrarian pick [5][6]. Group 3: Dillard's (DDS) - Dillard's faces challenges from e-commerce competition and consumer spending pressures due to inflation and high interest rates [7]. - The article notes a recent spike in personal savings, which could negatively impact Dillard's sales [8]. - However, with the Federal Reserve hinting at lower interest rates, Dillard's could present a contrarian opportunity amidst elevated short interest [8]. Group 4: Consolidated Edison (ED) - Consolidated Edison is a major energy company in the U.S. with a consistent profitability record due to its natural monopoly [10]. - The company has a forward dividend yield of 3.66% and has increased its annual payouts for 51 consecutive years, making it a "dividend king" [10]. - Despite a moderate sell rating and a price target of $88.75, the article argues that ED deserves at least a hold rating due to its stability [11]. Group 5: Aveanna Healthcare (AVAH) - Aveanna Healthcare has seen its stock value more than double in the past year, yet analysts rate it a moderate sell with a price target of $2.25 [12]. - The home healthcare market is projected to grow significantly, indicating a large total addressable market for Aveanna [13]. - This growth potential makes Aveanna a contrarian pick despite analyst skepticism [13]. Group 6: Tellurian (TELL) - Tellurian is a natural gas company facing significant short interest, with 15.3% of its float being shorted [15]. - The company is at risk of de-listing due to low share prices, but the article suggests that betting against it could be risky given the potential for a short squeeze [15]. - The bearish sentiment surrounding Tellurian may overlook potential recovery opportunities [14][15]. Group 7: Emergent Biosolutions (EBS) - Emergent Biosolutions develops vaccines and therapeutics but is currently rated a moderate sell with a price target of $5 [16]. - The company has a high short interest of 23% and a short interest ratio of 14.65 days to cover, indicating potential for significant losses for short sellers [17]. - Despite its challenges, the article suggests that betting against EBS may not be wise given the high short interest [17].