Drew Angerer/Getty Images
- Morgan Stanley expects the US stock market to consolidate the secular bull run next year.
- But the analysts say 16 companies are “facing challenges that are independent of cyclical trends” and could lose more than half their value in the next 12-18 months.
- The firm has an “underweight” rating for all of the mentioned stocks, and says their risks are larger than rewards.
Morgan Stanley has released the stocks its analysts think could lose more than half their value within the next 12 to 18 months.
These companies are “facing challenges that are independent of cyclical trends,” the bank’s analysts said.
They expect the US stock market to consolidate the secular bull run next year and for US economic growth to slow down, followed by a re-acceleration in 2020. While the macro outlook seems favorable, analysts identified some companies with secular challenges including market-share loss, rising competition, deteriorating end-markets, cost pressures, and others.
To compile the list, Morgan Stanley’s equity-research team started with the stocks its analysts rated as “underweight.” The bank then focused on stocks with an “unfavorable risk-reward skew,” looking for stocks where the cons outweighed the pros.
Here are the 16 stocks Morgan Stanley says stand to lose the most from secular pressures in the next 12-18 months:
15. Patterson Companies
MI
Ticker: PDCO
Sector: Healthcare
Year-to-date performance: -33%
Source: Morgan Stanley
14. United Natural Foods
MI
Ticker: UNFI
Sector: Retail
Market Cap: $1.12 billion
Year-to-date performance: -57%
Source: Morgan Stanley
13. Kohl’s
MI
Ticker: KSS
Sector: Retail
Market Cap: $10.95 billion
Year-to-date performance: +20%
Source: Morgan Stanley
12. Henry Schein
MI
Ticker: HSIC
Sector: Healthcare
Market Cap: $12.88 billion
Year-to-date performance: +26%
Source: Morgan Stanley
11. Waddell & Reed Financial
MI
Ticker: WDR
Sector: Financials
Market Cap: $1.57 billion
Year-to-date performance: -6%
Source: Morgan Stanley
10. Juniper Networks
MI
Ticker: JNPR
Sector: Technology
Market Cap: $9.55 billion
Year-to-date performance: +2%
Source: Morgan Stanley
9. MSG Networks
MI
Ticker: MSGN
Sector: Media
Market Cap: $1.65 billion
Year-to-date performance: +23%
Source: Morgan Stanley
8. Fitbit
MI
Ticker: FIT
Sector: Financials
Market Cap: $1.36 billion
Year-to-date performance: -8%
Source: Morgan Stanley
7. Bed Bath & Beyond
MI
Ticker: BBBY
Sector: Transportation
Market Cap: $1.79 billion
Year-to-date performance: -41%
Source: Morgan Stanley
6. Abercrombie & Fitch
MI
Ticker: ANF
Sector: Retail
Year-to-date performance: +7.5%
Source: Morgan Stanley
5. Tenneco
MI
Ticker: TEN
Sector: Consumer Discretionary/Industrials
Market Cap: $1.95 billion
Year-to-date performance: -42%
Source: Morgan Stanley
4. Avis Budget
MI
Ticker: CAR
Sector: Consumer Discretionary/Industrials
Market Cap: $2.295 billion
Year-to-date performance: -33%
Source: Morgan Stanley
3. EQT
MI
Ticker: EQT
Sector: Technology
Market Cap: $4.75 billion
Year-to-date performance: -41%
Source: Morgan Stanley
2. Seaspan
MI
Ticker: SSW
Sector: Transportation
Market Cap: $1.64 billion
Downside to bear: 89.2%
Year-to-date performance: +37%
Source: Morgan Stanley
1. Hertz Global
MI
Ticker: HTZ
Sector: Retail
Market Cap: $1.61 billion
Year-to-date performance: -20%
Source: Morgan Stanley
from Viral Trendy Update https://ift.tt/2Ebjiz9
via IFTTT
0 Comments