Tesla, Netflix And Bed & Bath Stocks To Tumble 57% In 2023

While majority of Wall Street analysts have ratings of buy or hold on the companies they cover, the rare sell or underperform rating does exist -- even for widely held stocks.

Photo Insert: Netflix's moderating subscriber growth, increased competition, and low-to-mid-single-digit free cash flow yield were all reasons to be cautious.

If select Wall Street analysts were right, three of the most popular stocks could tumble between 44% and 57% over the next year, Sean Williams wrote for Motley Fool.

The first ultra-popular stock that could plummet over the coming year, at least according to analyst Craig Irwin of Roth Capital, is electric vehicle (EV) manufacturer Tesla.

Even after slightly adjusting his firm's price target upward last week, Irwin foresees Tesla shares hitting $85. That represents a 57% decline from where shares closed last week.

Irwin's pessimistic tone on Tesla has to do with the company's nosebleed valuation. Irwin told CNBC other automakers can ramp production of EVs and effectively replicate the success Tesla has demonstrated but with a far more attractive valuation.

Home furnishings retailer Bed Bath & Beyond, Goldman Sachs analyst Kate McShane says, is headed to just $2 per share over the next 12 months. That would be a hefty 49% drop from where shares closed last week.

The impetus behind McShane's diminutive price target is Bed Bath & Beyond's weak second-quarter comparable-store sales and ongoing inventory problems.

The third exceptionally popular stock that at least one Wall Street analyst is not too fond of at its current valuation is streaming giant Netflix. In mid-October, following the release of the company's third-quarter operating results, Benchmark Company analyst Matthew Harrigan raised his firm's price target on the company by $5.

The only problem is that the new target of $162 (along with his firm's sell rating) sits 44% below where Netflix closed this past week. In an interview with CNBC in July, Harrigan noted that Netflix's moderating subscriber growth, increased competition, and low-to-mid-single-digit free cash flow yield were all reasons to be cautious.

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