Intel and Tesla lead the way! JP Morgan reveals the best short list for US stocks in the second half of the year

According to the Zhitong Finance APP, the JP Morgan U.S. stock analyst team recently published a research report, selecting the "most attractive structural and tactical short-selling targets" for the second half of this year. Below are specific short-selling recommendations and summaries of analysts' views for various industries:

Capital Goods/Industrial Sector

Werner Enterprises (WERN.US): Analyst Brian Ossenbeck stated, "The freight market remains weak, with oversupply and sluggish demand compounded by tariff uncertainties, leading to continued price declines."

Kennametal (KMT.US): Analyst Tami Zakaria believes, "Weak end-market demand has led to a decline in sales, while tariff policies are squeezing profit margins."

The Middleby Corp (MIDD.US): Zakaria added, "Price increases triggered by tariffs may further suppress already weak demand, squeezing profit margins in the food service and food processing sectors."

Consumer Sector

Rivian Automotive (RIVN.US): Analyst Ryan Brinkman stated, "The decline in electric vehicle subsidies and tariff policies may exacerbate its EBITDA losses and free cash flow outflows."

Tesla (TSLA.US): Brinkman further noted, "The reduction in subsidies threatens already thin profit margins (EBIT margins lower than General Motors (GM.US) and Ford (F.US)), and sensor configuration defects may lead to the autonomous taxi project underperforming expectations."

Beyond Meat (BYND.US): Analyst Ken Goldman pointed out, "The industry's structural decline combined with a cash flow crisis raises doubts about the company's continued ability to operate independently."

Choice Hotels International (CHH.US): Analyst Daniel Politzer stated, "We forecast that by 2027, CHH's adjusted EBITDA growth rate will remain in the low single digits for the long term, which is several hundred basis points lower than peers Wyndham Hotels (WH.US) (2027 EBITDA compound annual growth rate +7%)."

Installed Building Products (IBP.US): Analyst Michael Rehaut stated, "Given the stock's strong 26% increase since June 1 (compared to an average of 16% for peers and a 6% increase in the S&P), along with valuations above historical levels (enterprise value/EBITDA multiple more than 15% higher than the 5/10 year average), we expect this quarter's performance to lag behind peers."

LGI Homes (LGIH.US): Rehaut also mentioned, "Although the price-to-book ratio is only 0.6 times, if the return on equity further declines, there is still a moderate downside risk to valuations."

NVR Inc. (NVR.US): Rehaut noted, "Our 2025 EPS expectations are 7% lower than the market consensus (with other upcoming reporting builders averaging 3% lower), and we expect this quarter's performance to lag behind peers." Stanley Black & Decker (SWK.US): Rehaut stated, "The target valuation multiple is more than 1 times lower than the current stock price (based on our 2025 EBITDA expectations) and 3 times lower than the 10-year average, reflecting our more conservative earnings expectations compared to the market, which is expected to trigger further valuation compression."

Whirlpool (WHR.US): Rehaut noted, "The stock's 38% increase since June (industry average 14%, S&P up 6%) and historically high valuation suggest it will underperform its peers this quarter."

Cheesecake Factory (CAKE.US): Analyst John Ivankoe believes, "Even accounting for the growth potential of Flower Child (valued at approximately $1 billion by JP Morgan), the stock price has fully reflected its value, while the traditional business's profit margins have peaked."

Shake Shack (SHAK.US): Analyst Rahul Krotthapalli stated, "Its high absolute price matches the increasingly fast-food-like business model, which relies on substantial marketing support to achieve same-store traffic growth."

Energy Sector

Canadian Solar (CSIQ.US): Analyst Mark Strouse pointed out, "The risks of overcapacity and low prices persist... Given the new regulations under the Inflation Reduction Act, the company may need to sell equity stakes in newly added U.S. manufacturing assets."

ChargePoint (CHPT.US): Analyst Bill Peterson believes, "The slowdown in electric vehicle growth combined with a high-interest-rate environment still poses challenges for charging hardware growth."

Nabors Industries (NBR.US): Analyst Grant Hynes stated, "The debt burden is higher than the industry average, and although free cash flow/enterprise value is comparable to peers, the equity is at a disadvantage."

Vital Energy (VTLE.US): Analyst Zach Parham noted, "Limited free cash flow after 2026, high debt levels combined with a shorter inventory turnover cycle than peers."

Financial Sector

Circle Internet Group (CRCL.US): Analyst Kenneth B. Worthington stated, "The slower-than-expected growth of USDC in 2025 and deviations in stablecoin legislation may trigger a valuation reassessment."

Lincoln National (LNC.US): Analyst Jimmy S. Bhullar stated, "The outlook for business trends is cautious, with limited capital flexibility, making it vulnerable to macroeconomic downturns."

Lineage (LINE.US): Analyst Michael W. Mueller predicts "the second-quarter report may lower performance guidance."

Howard Hughes Holdings (HHH.US): Analyst Anthony Paolone stated, "Despite giving a neutral rating for six months, the weak housing market may pressure recent land sales."

Comerica Bank (CMA.US): Analyst Anthony Elian believes, "Loan growth in the second half of 2025 is unlikely to improve significantly due to (1) high macroeconomic uncertainty and (2) the ongoing drag from the commercial real estate portfolio, although it has weakened." Texas Capital Bancshares (TCBI.US): Elian added, "The investment banking business is still in its early stages, and high costs make it difficult to significantly contribute to overall profitability."

Healthcare Sector

Moderna (MRNA.US): Analyst Jessica Fye stated, "Ongoing cash burn combined with regulatory hurdles and legal issues makes it difficult to see positive performance in the short term."

Precipen (PGEN.US): Analyst Brian Cheng expressed a cautious outlook on the FDA approval prospects for PRGN-2012 (vaccine for recurrent respiratory papillomatosis) ahead of the August 27th decision, noting that even if approved, the commercialization process will be slow.

Myriad Genetics (MYGN.US): Analyst Rachel Vatnsdal mentioned, "Limited incremental buyers and investors favoring high-growth diagnostic companies make the risk-reward ratio unfavorable for MYGN."

Integra LifeSciences (IART.US): Analyst Robbie Marcus indicated, "Since this year's performance relies heavily on the second half, and the 2025 guidance appears achievable but not conservative, Integra's performance will continue to lag."

Materials Sector

CF Industries Holdings (CF.US): Analyst Jeffrey J. Zekauskas stated, "The massive capital expenditure for building the blue ammonia plant will limit free cash flow for many years, potentially suppressing the stock price."

Media and Telecom Sector

SBA Communications (SBAC.US): Analyst Richard Choe noted, "Limited growth potential for leasing revenue, combined with pressures from Latin American operations and rising interest expenses, may lead to a downward revision of financial expectations for 2026."

Snap (Snap.US): Analyst Doug Anmuth remarked, "The transition to direct response/funnel bottom advertising is challenging, and brand advertising spending is highly volatile."

Bumble (BMBL.US): Analyst Cory A Carpenter stated, "Bumble's initial user numbers and paid user growth are accelerating downwards, and a restart of brand marketing may lead to margin contraction."

Paramount Global (PARA.US): Analyst David Karnovsky believes, "Revenue trends remain under pressure, and the merger guidance announced a year ago may disappoint."

Altice USA (ATUS.US): Analyst Sebastiano C. Petti pointed out, "Marketing investments to boost user growth (local marketing/fiber migration/bundled package promotions) will increase costs and drag down EBITDA."

Technology Sector

Mobileye Global (MBLY.US): Analyst Samik Chatterjee stated, "A forward P/E ratio of 66 times presents a significant premium compared to single-digit revenue growth tech/auto companies."

Super Micro Computer (SMCI.US): Chatterjee also noted, "Despite strong demand for AI servers, profit margins far below the company's level will lead to downward revisions in expectations." Lightspeed POS (LSPD.US): Analyst Tien-tsin Huang pointed out, "Although it is revitalizing business growth through expansion, it is recommended to wait and see the execution effects under the fierce competition from well-capitalized domestic competitors (XYZ/TOST/FI)."

Western Union (WU.US): Huang also stated, "Restrictive immigration policies, coupled with a decline in remittance volumes in the second quarter compared to the first quarter (data from central banks in Mexico, the Philippines, Bangladesh, and Pakistan), indicate limited opportunities for its main channels to outperform the market."

Intel (INTC.US): Analyst Harlan Sur stated, "Intel is struggling to navigate the dual challenges of catching up in process technology and stabilizing its client/server CPU market share."

Skyworks Solutions (SWKS.US): Analyst Peter K. Peng stated, "Demand in the second half of the year is expected to be weaker than seasonal norms due to tariff/trade factors."