Earnings season is right around the corner, and the results may serve a harsh dose of reality to some major stocks, according to Barclays. Even with the big pullback in stocks during the first quarter, there are still stocks that are trading too high and seem likely to miss earnings, the firm said in an April 3 note to clients "We screened our North American equity coverage universe for Underweight-rated stocks with downside to the current price target, and for which the Barclays 2022 EPS estimate comes in below the consensus estimate," the note said. "As a liquidity factor, we limited the results to stocks with an average daily trading value of $50 million or more over the last 30 days." Here are some of the stocks from the list, with their downside to Barclays' price target as of the April 5 close. Source: Barclays The list includes several names that are trading more than 20% above the Barclays target price, including the newly renamed Paramount Global . The media company is investing heavily in its streaming service, which could take a bite out of earnings. Grocery chain Sprouts Farmers Market has outperformed in 2022 and is now trading more than 25% above the Barclays target price. The company has said it will increase investment in opening new stores, which may hurt earnings if sales at those new locations are slow to develop. One stock on the list that has made big moves in the past week is Twitter , which jumped sharply after Elon Musk revealed that he had purchased a 9% stake in the company and subsequently joined the board of directors . However, the stock was already trading above Barclays' price target before Musk joined. If the investor excitement around Musk's involvement proves to be brief, then earnings could provide a catalyst for a pullback. Another stock that Barclays is skeptical of its consumer goods company Clorox . Barclays sees the company earning just under $4 per share in the current year, while the Wall Street consensus sees $4.16 per share. Clorox is scheduled to release its next quarterly results on May 2. -CNBC's Michael Bloom contributed to this report.
Clorox Disinfecting Wipes canisters move along a conveyor belt at the company's manufacturing facility in Forest Park, Georgia, on Wednesday March 10, 2021.
Matt Odom | Bloomberg | Getty Images
Earnings season is right around the corner, and the results may serve a harsh dose of reality to some major stocks, according to Barclays.