Benzinga analysts say Tesla and these stocks may consider selling before the New Year 2026 arrives.

Year-end holidays are approaching, and the financial markets are entering a traditional portfolio consolidation period. December has always been the best time for investors to review their positions, execute tax-loss harvesting, and adjust allocations for the coming year. Although the US stock market overall remains strong in 2025, some large-cap stocks are still underperforming. Benzinga has identified five stocks that may be worth considering selling before 2026 arrives. This is purely market observation and not investment advice.

Target (NYSE: TGT)

For Target (NYSE: TGT), 2025 has been a challenging year. Target is one of the few US retailers whose performance continues to lag. Despite a P/E ratio of 11 and a price-to-sales ratio of only 0.39, the struggling retailer is battling both profit and margin pressures. In the third quarter of fiscal 2026, Target’s same-store sales declined by 2.7%. Management has lowered its full-year EPS guidance for fiscal 2025 to $7–$8. After the November 19 conference call, analysts downgraded the stock 11 times.

Deere & Company (NYSE: DE)

Agricultural machinery manufacturer Deere (NYSE: DE) is one of the traditional companies most impacted by the Trump trade war. Although its Q4 fiscal 2025 revenue and EPS exceeded market expectations, the company’s outlook is very conservative due to an anticipated pre-tax tariff loss of over $1.2 billion in 2026. Additionally, the agricultural crisis in the US Midwest adds to the negative outlook as Deere approaches 2026.

Over the past six weeks, the stock attempted a rebound, but momentum appears to have weakened. After a death cross earlier, the 200-day moving average has become a strong resistance level, keeping the stock below the low point set when the company released its Q3 fiscal 2026 earnings in August. Another warning sign is the MACD indicator, which has turned lower again after nearly two months of gains.

Tesla (NASDAQ: TSLA)

Tesla (NASDAQ: TSLA) has always experienced volatile stock movements, and recent challenges include overvaluation concerns and increased competition. TSLA’s P/E ratio exceeds 300, with a price-to-sales ratio over 15, and free cash flow valuation at 200. Its high P/E reflects market expectations of significant future growth, but also means the stock’s earnings expectations are demanding, often leading to larger price swings.

Tesla’s European vehicle sales continue to plummet, and competitors like BYD are gaining strength in China’s EV market. The expiration of US EV tax credits and tightening emission standards also pose industry headwinds. Analysts believe Tesla now relies on developing AI technology to boost its stock price, but AI development faces challenges—Google’s Waymo leads RoboTaxi, and Grok, ChatGPT, and Gemini are not particularly outperforming.

Tesla’s stock may be approaching a new resistance near the 50-day moving average. Since April, the stock has not fallen significantly below this level, but a potential double top pattern has formed. Investors are watching for signs of weakening upward momentum. If the stock fails to break above the 50-day moving average or the double top pattern, a downward move is likely.

United Parcel Service (NYSE: UPS)

From a valuation perspective, UPS (NYSE: UPS) may seem attractive, but this $80 billion shipping giant is lagging behind competitors like FedEx. Tariff policies have impacted all transportation and courier companies, but the removal of minimum exemption clauses has created logistical challenges for UPS, forcing it to allocate significant resources to address them.

UPS stock attempted to break out in October but was quickly met with resistance near the 200-day moving average. The simple moving averages (SMA) of 50 and 200 days continue to consolidate; however, the price remains under resistance, increasing pressure on buyers. Other technical indicators also point downward. Although the stock has not yet broken through resistance, the relative strength index (RSI) is approaching overbought levels, and the MACD indicates the strongest upward momentum since August. For a stock that has already declined 20% year-to-date, multiple technical resistances are usually bad news, especially considering macroeconomic pressures are not factored in yet.

Vistra Corp (NYSE: VST)

Energy stocks surged significantly due to the data center boom, but returns have started to diminish. Once vibrant, Vistra (NYSE: VST) now appears weak with an uncertain outlook. On November 6, the company announced its Q3 2025 earnings, which fell far below expectations, with revenue more than 23% below forecasts. As winter deepens, natural gas price fluctuations could pressure Vistra’s earnings. Currently, the stock’s P/E ratio is 60, with a price-to-book ratio of 3.3 and a market-to-book ratio of 18.

Furthermore, VST’s price chart is among the worst of large energy companies. It faces three major technical resistances, including breaking below the 50-day moving average and a bearish MACD crossover. The RSI has been declining since September, indicating that VST’s momentum is retreating faster than its price. If the stock falls below the 200-day moving average, it could trigger strong downward pressure.

This article, according to Benzinga analysts, suggests Tesla and these stocks may be considered for selling before the arrival of 2026. Originally published on Chain News ABMedia.