Analysts Flag 3 S&P 500 Stocks to Avoid, Citing 11.8% Sales Drop at Microchip
Updated
Updated · Yahoo Finance · Aug 16
Analysts Flag 3 S&P 500 Stocks to Avoid, Citing 11.8% Sales Drop at Microchip
1 articles · Updated · Yahoo Finance · Aug 16
Summary
Three S&P 500 names—Microchip Technology, UPS and CooperCompanies—were singled out as stocks to avoid because of weak growth, falling profitability and limited return potential.
Microchip drew the sharpest warning: sales fell 11.8% annually over the past two years, EPS weakened faster than revenue over five years, and free-cash-flow margin dropped 15 percentage points.
UPS was criticized for flat sales over five years, an 8.4% annual EPS decline and deteriorating returns on capital, suggesting its core profit engines are losing strength.
CooperCompanies faced a milder but still negative view, with 6.5% annual sales growth trailing many healthcare peers and projected to slow to 4.2% over the next 12 months.
The calls underscore that S&P 500 membership alone is not a buy signal when valuation—20.1x forward P/E for Microchip and 13.4x for UPS—meets weakening fundamentals.