These are the shares to promote into the bear market bounce, Barclays says

The U.S. inventory market simply loved its finest month since 2020, however that additionally means some weak shares obtained unwarranted assist and will quickly fall again, based on Barclays. The British financial institution put collectively a listing of shares that its analysts charge underweight and which have massive draw back danger with little potential upside. “We define negative risk/reward as the absolute ratio between the stock’s downside to its downside case and its upside to its upside case, looking for a ratio of at least 2:1. We applied this factor to our universe of 120+ Underweight-rated stocks in North America,” Barclays mentioned in a be aware to shoppers. The shares under are buying and selling not less than 10% above their Barclays worth targets. Source: Barclays The identify on the record with essentially the most draw back, based on Barclays analysts, is well being care inventory Illumina . Shares of Illumina rose greater than 17% in July, and closed the month at a worth of $216.68. That provides Illumina draw back of greater than 30% to Barclays’ worth goal of $150. Another stronger performer on the record is Liberty Media Formula One . The sports activities inventory rose greater than 6% in July and is now up 7.2% 12 months up to now. Barclays’ bearish outlook on Formula One isn’t shared by many on Wall Street. The inventory nonetheless has a purchase score from greater than half of the analysts overlaying the corporate, based on FactSet. The funding agency has a worth goal of $50 per share for Formula One, which is greater than 26% under the place the inventory closed Friday. One inventory on the record that underperformed final month was Domino’s Pizza . However, the chain nonetheless completed up July a little bit increased, regardless of lacking earnings estimates for its second quarter . Domino’s mentioned same-store gross sales declined whereas analysts had been anticipating 5% progress, based on StreetAccount estimates. Barclays has a worth goal of $350 per share for Domino’s, implying draw back of almost 11% for the inventory. — CNBC’s Michael Bloom contributed to this report.