Short Idea Alert: Beyond Meat, Shake Shack, Plus One Semiconductor Stock Analysts Have On Their Lists Right Now

Zinger Key Points

Beyond Meat and Shake Shack face significant challenges, prompting JPMorgan analysts to recommend them as top short ideas.
GlobalFoundries' slower recovery in the semiconductor sector makes it a candidate for shorting.
Get New Picks of the Market's Top Stocks

As the market transitions into the second half of 2024, JPMorgan’s equity research analysts have identified several companies they believe are ready to be shorted.

Their picks span different sectors, each presenting unique challenges that could impact stock performance.

Here’s a closer look at three of their top short ideas:

Beyond Meat Inc. BYND

Analyst Kenneth Goldman is Underweight Beyond Meat stock.

Goldman’s Rationale: Consumers are increasingly moving away from alternative meat products and Beyond Meat is struggling to adapt.

The company remains unprofitable, making it a candidate for shorting. Goldman’s view is Beyond Meat’s challenges are likely to persist, making it a risky investment.

Shake Shack Inc. SHAK

Analyst John Ivankoe is Underweight Shake Shak stock.

Ivankoe’s Rationale: Shake Shack is facing high promotional activity that could obscure its ability to drive comparable store sales growth for fiscal 2025 and beyond.

Additionally, there is low visibility on traffic and frequency growth, especially for its non-destination sites as the brand attempts to expand its market presence. This uncertainty makes Shake Shack a potential short opportunity.

GlobalFoundries Inc. GFS

Analyst Harlan Sur has a Neutral rating on GlobalFoundries stock.

Sur’s Rationale: As a foundry semiconductor supplier, GlobalFoundries is positioned further down the value chain compared to its peers. This positioning is expected to result in slower revenue growth, margin improvements, and earnings per share (EPS) revisions, particularly in the near to mid-term.

Sur’s analysis suggests GlobalFoundries may lag behind its competitors as the semiconductor sector experiences an early cyclical recovery.

These stocks represent diverse sectors with unique challenges, and JPMorgan’s analysts believe they are positioned for potential declines. Investors should consider these insights when evaluating their portfolios and market strategies.

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