Stock markets will wrap up the year with a pair of stocks having downside selling risks.
In the vaccine sector, Moderna (MRNA) risks erasing its recent rally. MRNA stock bottomed at $22.28 in late November, peaked at nearly $36 recently, and closed at $31.20. The Coalition for Epidemic Preparedness Innovations (CEPI) granted Moderna up to $54.3 million to investigate a bird flu shot.
In the software sector, Palantir (PLTR) pulled back from its $200 resistance level. The stock is at risk of profit-taking, largely due to the excess valuations. Its price-to-earnings ratio is nearly 300 times. The sector median is below 25 times. Still, Palantir has many government contracts ahead. Stock markets are betting that the firm will announce more deals with the defense unit of the government in 2026.
In retail, Deckers Outdoor (DECK) has a good chance of finding support levels at $100. Nike (NKE) is struggling, which sent the stock down by $20 since August. In the second quarter, Nike said in its conference call that it is undergoing a turnaround. Win Now actions, athlete-centered innovation, and brand growth are the catalysts. Still, markets are doubtful about Nike’s prospects.
NKE stock also trades at a 36 times P/E ratio. DECK stock is less than half that, with a P/E of 15.3 times.
Other firms in this sector to watch include On Holdings (ONON).
Related Stories
