In December 2021, JPMorgan released a study that listed what they considered to be the most promising stocks for 2022. The list includes more than 50 companies of growth, value, potential short ideas and neutral positions.
Today, we'll look at the first part of the potentially worst stocks from the think tank.
**Deere & Co **- analysts are convinced that the peak of demand for the company's products was passed in 2021 and predict a moderate rate of profit growth in subsequent years due to the competitive environment.
J.B. Hunt — JPMorgan predicts supply problems for the company and sees the risks of increasing the cost of production, as well as the overly optimistic current assessment formed by the last positive report, without convincing arguments for continuing to increase sales.
Kimberly Clark Corp. - the analytical center predicts a decrease in business margins in 2022 due to the increase in prices for production costs, which is not provided by the market.
Quidel — the company is too focused on the covid-19 testing market, due to which it has reduced its share in the main segment. JPMorgan does not see long-term prospects for this market and excessive focus of the company on testing can lead to a long-term drop in profits.
The ideas of JPMorgan are not investment recommendations, but they can be a good reason to study the business of companies in more detail and their prospects.