The key averages are rising by means of the top of 2023, however not all shares could be winners. Investor optimism a couple of extra dovish Fed has despatched inventory costs increased since late October, with the three main indexes lately posting eight straight weeks of beneficial properties. The Nasdaq-100 rose to new heights, closing at a brand new file excessive on Tuesday. The index’s beneficial properties because the starting of the yr till now have reached 54%. Though the index is on monitor for a robust end to 2023, 17 shares are set to finish the yr on a unfavourable observe to date. Moderna, whose inventory has fallen about 45% to date this yr, leads these losses. Declining demand for the Covid vaccine has contributed to Moderna’s decline this yr. However shares of the biopharmaceutical firm rose 28% this month after intermediate trial knowledge revealed that the most cancers vaccine, developed in collaboration with Merck, diminished the chance of dying or relapse when used with Keytruda in sufferers with melanoma. Analysts overlaying the inventory are considerably bullish, in keeping with FactSet. Almost 38% of analysts have assigned a Purchase score to Moderna, with a mean upside potential of 28.7%. Biotech inventory Illumina, which is down 30% this yr, is the second-biggest loser on the Nasdaq-100. Whereas the inventory has risen lately after Illumina introduced plans to promote its Grail unit, that is not sufficient to deal with different hurdles going through the corporate. “ILMN has struggled to develop revenues over the previous 4 years, and we see no imminent answer to the myriad of challenges going through the enterprise,” Financial institution of America analyst Michael Riskin wrote. Earlier this month, the financial institution downgraded Illumina shares to an underperform score, although it continues to name the corporate a “market chief in DNA sequencing.” Nonetheless, Riskin famous that he sees no signal of a “fast repair in sight” for the corporate’s stagnant revenues. Analysts polled by FactSet seem to agree together with his evaluation. Whereas 52% of analysts overlaying Illumina have given it a Purchase score, the common worth goal signifies a possible draw back of 1.9% from the inventory’s present buying and selling worth. Utility firm Exelon is down 18% this yr, damage by an unfavorable fee case resolution in Illinois that resulted within the firm having one of many lowest returns on fairness within the business, at 8.91%. Consequently, Morgan Stanley downgraded the inventory to equal weight from chubby. Nonetheless, Morgan Stanley analyst David Arcaro’s worth goal of $38, down from $45, suggests the inventory might rise 7% from Tuesday’s shut. FactSet knowledge signifies that solely 21% of analysts overlaying the corporate have a sure purchase score, and the common upside stands at 12.8%. Arcaro emphasised optimistic traits reminiscent of enticing progress alternatives and low earnings dangers in Exelon’s remaining companies. However he added, “Rising concern about its largest services can be a drag on the inventory by means of 2024.” One other inventory that missed the 2023 rally is PayPal. Shares of the fintech firm are down about 12% in 2023. Financial institution of America lately downgraded the inventory to a impartial score from purchase, and accompanied the transfer by decreasing its worth goal to $66 from $77. This implies a rise of roughly 5.5% from Tuesday’s shut. Traders should be affected person forward of a pivotal yr for the inventory, analyst Jason Kupferberg wrote. “Shares have been buying and selling off lows following PYPL’s modest Q3 win and new CEO Alex Chriss’ messaging on worthwhile progress and elevated urgency round execution. Nonetheless, we see ’24 as a transitional yr, as the brand new CEO/CFO seeks “Credibility whereas driving sustainable enhancements in top-line metrics,” he wrote. Greater than half of the analysts surveyed by FactSet have a purchase score on the identify, and the common consensus worth goal signifies an upside of 18.3%. — Contributed by Michael Bloom of CNBC’s reporting.