10 Stocks to Sell as the Second Half Begins
Listen to the audio version of this article (generated by AI).
We’re now in the early days of the second half of 2026.
And that makes this a perfect time to reassess what’s working in your portfolio… and what isn’t.
You see, a lot has changed since the year began.
Conflict in the Middle East rattled investors and sent crude oil prices soaring. While tensions remain elevated, oil prices have come off their highs, and the market has largely been able to look past that uncertainty.
At the same time, artificial intelligence, data center and memory stocks have continued to dominate Wall Street’s attention. These are still some of the strongest areas of the market, but we’ve also seen how quickly investors can take profits in these names when headlines shift.
Meanwhile, the Federal Reserve remains a key focus. Wall Street is closely watching every comment from new Fed Chair Kevin Warsh to determine when the next round of rate cuts – or hikes – may arrive.
And, of course, Washington continues to play a major role in the market. New policy shifts tied to artificial intelligence, energy infrastructure and U.S. manufacturing are creating fresh opportunities for investors.
That makes this time of year the perfect time to do a little portfolio cleanup.
Every investor is different… and so I strongly encourage you to evaluate your own situation before making any major decision. But generally speaking, you should ask yourself three key questions before making any major buy or sell in your portfolio:
- What is your risk tolerance…
- What are your financial goals…
- And how long do you have to achieve them?
If you’ve addressed these questions, you’re off to a great start.
And in the rest of today’s Market 360, I want to share 10 stocks my system says you should consider parting ways with now. These aren’t the kind of names you want to hold onto in a changing market environment. Weak fundamentals, deteriorating momentum and poor institutional support… It’s all there in the data.
Let’s take a look…
The Data Says It’s Time to Let These Go
My Stock Grader system (subscription required) runs the numbers on thousands of companies scanning for earnings growth, cash flow, analyst earnings revisions, institutional buying pressure and more. And while it’s currently flagging some very compelling buy opportunities, it’s also flagging plenty of sells.
Some of these may look familiar to you. They may have even been solid performers in the past. But based on the data I’m seeing now, the risk of holding these stocks outweighs the potential reward – especially as we head into the back half of the year.
I encourage you to give this list of stocks a skim. Each one currently has a D or F rating, which means my system considers it either a “Sell” or a “Strong Sell.” So, feel free to adjust your portfolio accordingly…
| Symbol | Company Name | Quantitative Grade |
Fundamental Grade |
Total Grade |
|---|---|---|---|---|
| COIN | Coinbase Global, Inc. Class A | F | D | F |
| DPZ | Domino’s Pizza, Inc. | F | D | F |
| GIS | General Mills, Inc. | F | D | F |
| GT | Goodyear Tire & Rubber Company | F | D | F |
| HMC | Honda Motor Co., Ltd. Sponsored ADR | D | D | D |
| HON | Honeywell Technologies Inc. | D | D | D |
| LOW | Lowe’s Companies, Inc. | D | D | D |
| LULU | lululemon athletica inc. | F | D | F |
| MCD | McDonald’s Corporation | D | D | D |
| SONY | Sony Group Corporation Sponsored ADR | F | D | D |
A New Way to Find the Market’s Next Winners
Now, if you are looking for stocks to replace these sells, I encourage you to focus on fundamentally superior stocks with growing sales and earnings.
That is always the foundation of a strong portfolio.
But right now, I’m also watching for something more specific: the early signals that show where institutional money may be moving next.
Because the biggest gains often do not come from chasing the stocks everyone is already talking about. They come from spotting the stocks that are quietly strengthening before Wall Street fully catches on.
That’s why I’ve been working on a brand-new research project built around something I call Precursor Intelligence.
The idea is simple: Before a major market move hits the headlines, there are often early signals hidden in the data.
Sales growth starts to accelerate… earnings estimates start to rise… institutional buying pressure starts to build…
And certain stocks begin to strengthen long before the crowd fully understands why.
My job is to find those signals early.
And right now, my system is pointing me toward a very specific group of stocks that could benefit as the next stage of the artificial intelligence boom unfolds.
These are not the obvious AI names everyone already knows. But I believe they could become increasingly important as billions of dollars continue flowing into the AI boom.
So, while we’re using today’s Market 360 to clear out weak stocks, I also want to show you where I believe the next wave of opportunity is taking shape.
That’s why I recently recorded a special presentation explaining what Precursor Intelligence is, why I believe this opportunity is still in its early stages and how you can prepare before more investors catch on.
You can check it out right here.
Sincerely,
Louis Navellier
Editor, Market 360