These Are the Stocks Most Likely to Be Targeted by Activist Investors, Says Wolfe Research

Wolfe Research has issued a new list of stocks it says are most likely to be targeted by activist investors.

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Activist investors such as Elliott Investment Management build big stakes in underperforming publicly traded companies and agitate for change, often demanding new senior managers and board members, and shifts in corporate strategies.

Poor-performing stocks often jump higher on news that an activist investor has built a sizable stake. Analysts at Wolfe Research have identified several companies that it says are struggling and likely to be targeted by activists in the near-term.

The Target List

Wolfe Research’s updated list includes the following stocks:

• Health insurer Humana HUM +2.57% ▲

• Semiconductor maker Qualcomm QCOM +0.81% ▲

• Energy technology company Enphase Energy ENPH +4.72% ▲

• Software company ServiceNow NOW +0.11% ▲

• Warehouse club and grocer BJ’s Wholesale BJ -0.14% ▼

Analysts at Wolfe Research say these companies are particularly vulnerable to activist interest given the woeful underperformance of their stocks. Each stock on the list has declined 10% or more over the last 12 months and underperformed peers in their respective sectors.

Comparing The Stocks on Wolfe Research’s List

Below is a chart comparing the stocks on Wolfe Research’s list. NOW stock is the only one with a Strong Buy rating, which comes after the share price has fallen 30% in the last year. Most of the other stocks on the list carry Moderate Buy ratings from analysts.

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