By Steve Goldstein
Last month, strategists at JPMorgan put a list of companies at risk of steep drops when a COVID-19 vaccine is ready.
In light of the news that a late-stage trial of the vaccine being developed by Pfizer /zigman2/quotes/202877789/composite PFE +3.59% and BioNTech /zigman2/quotes/214419716/composite BNTX -2.90% is more than 90% effective, it’s a good reference.
Strategists at JPMorgan have put together a list of companies that are at risk of steep drops. They are at the “upper echelon of momentum and have crowded positioning, that could see the second derivative of their profit growth decrease as consumer / corporate activity normalizes,” said the JPMorgan team. Some of the names, like Zoom Video Communications /zigman2/quotes/211319643/composite ZM -1.32% , are obvious, but the list also includes companies including education technology provider Chegg /zigman2/quotes/205655041/composite CHGG -3.33% and Central Garden and Pet Co. /zigman2/quotes/206292828/composite CENTA -4.07% that aren’t as well known.
Through October, this group of stocks has outperformed the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.01% by about 9%.
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PFE
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CHGG
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CENTA
