The Analyst Anxiety Index: 3 Stocks to Avoid as Uncertainty Grows

Market Overview - Global stocks are experiencing a significant surge, with the MSCI ACWI Index reaching an all-time high, part of a trend where 14 of the world's 20 largest stock exchanges have set new records [1] - In the U.S., the S&P 500 and Nasdaq 100 have also hit record levels, while the Dow Jones Industrial Average has surpassed the 40,000 mark for the first time [1] - Major markets in Europe, Canada, Brazil, India, Japan, and Australia are either at or near their highest points [1] Market Drivers - Anticipated interest rate cuts, robust economies, and strong corporate earnings are propelling the markets forward [2] - Approximately $6 trillion in money market funds is seen as potential fuel for the ongoing rally [2] - The S&P 500 has experienced its longest stretch without a 2% decline since 2017-2018, lasting 311 days [2] Company-Specific Analysis Bolt Biotherapeutics (BOLT) - Bolt Biotherapeutics has faced downgrades from various analysts following the discontinuation of its lead program, BDC-1001, and significant changes in strategy and management [3] - Leerink Partners downgraded the stock from Outperform to Market Perform, adjusting the price target from $3.00 to $1.00 [3] - Guggenheim also downgraded Bolt from Buy to Neutral, citing low visibility on the success probabilities of remaining product candidates [4] Under Armour (UAA) - Under Armour's stock was downgraded by JPMorgan from Neutral to Underweight, with a revised price target of $6.00, down from $8.00 [5] - The downgrade reflects a forecast for fiscal year 2025 that includes significantly lower adjusted earnings per share (EPS) and anticipated revenue declines [5] - Under Armour expects a diluted loss per share of -$0.08 to -$0.10 for Q1 2025, contrasting with the Street's anticipated $0.04 EPS [6] Baidu (BIDU) - Morgan Stanley downgraded Baidu from Overweight to Equal-weight, lowering the price target from $140 to $125 [7] - The downgrade reflects a modest year-over-year increase in Baidu's core revenue but a weak advertising outlook [7] - Despite a 17% rally in Baidu's stock price, limited near-term catalysts for further growth have been noted [8]