Morgan Stanley has named 37 stocks that they deemed “secularly challenged” and you should probably avoid investing in for the immediate future. Analysts from the leading global financial services firm state that these stocks are “facing challenges that are independent of cyclical trends” for the next 12-18 months. Morgan Stanley believes these stocks carry an “unfavorable risk/reward profile” and their cons outweighed the pros going forward.
Numerous big-name retailers are on Morgan Stanley’s “Do Not Buy” list including Target, Kohl’s, Abercrombie & Fitch, American Eagle Outfitters, DSW, and Gap. Other notable names on the list are Avis rental cars, which has been hurt by ride-sharing apps such as Uber and Lyft. Money transfer giant Western Union is facing new competition from cryptocurrencies. UPS, the multi-billion-dollar corporation, faces threats from e-commerce, its unionized workforce and its integrated network, which could hamper the world’s largest package delivery company. J.M. Smucker Co., the fruit jelly company founded in 1897, is thought to be clinging to their old-school methods which could hurt them competing against trendy private label competitors.
In the tech department, you may want to exercise caution in the following companies: Gogo Inc., a provider of in-flight internet and entertainment for commercial and business aircraft; Akamai Technologies, a company that provides cloud services; SunPower Corp., an American energy company that manufactures solar panels; and NetApp Inc., a California-based storage and data management company.
This report is only the predictions of analysts, so do with this information as you will. You can see all 37 of the stocks you need to avoid over at The Street.