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Morgan Stanley: These 16 Stocks Could Get Cut in Half — or Worse

Morgan Stanley has released the stocks its analysts think could lose more than half their value within the next 12 to 18 months.

These companies are "facing challenges that are independent of cyclical trends," the bank's analysts said.

They expect the US stock market to consolidate the secular bull run next year and for US economic growth to slow down, followed by a re-acceleration in 2020. While the macro outlook seems favorable, analysts identified some companies with secular challenges including market-share loss, rising competition, deteriorating end-markets, cost pressures, and others.

To compile the list, Morgan Stanley's equity-research team started with the stocks its analysts rated as "underweight." The bank then focused on stocks with an "unfavorable risk-reward skew," looking for stocks where the cons outweighed the pros.

Here are the 16 stocks Morgan Stanley says stand to lose the most from secular pressures in the next 12-18 months:

16. Macy’s

Ticker: M

Sector: Retail

Market Cap: $10 billion

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Downside to bear: 50.9%

Year-to-date performance: +30%

15. Patterson Companies

Ticker: PDCO

Sector: Healthcare

Market Cap: $2.4 billion

Downside to bear: 52.5%

Year-to-date performance: -33%

14. United Natural Foods

Ticker: UNFI

Sector: Retail

Market Cap: $1.12 billion

Downside to bear: 54.2%

Year-to-date performance: -57%

13. Kohl’s

Ticker: KSS

Sector: Retail

Market Cap: $10.95 billion

Downside to bear: 54.3%

Year-to-date performance: +20%

12. Henry Schein

Ticker: HSIC

Sector: Healthcare

Market Cap: $12.88 billion

Downside to bear: 55%

Year-to-date performance: +26%

11. Waddell & Reed Financial

Ticker: WDR

Sector: Financials

Market Cap: $1.57 billion

Downside to bear: 55.1%

Year-to-date performance: -6%

10. Juniper Networks

Ticker: JNPR

Sector: Technology

Market Cap: $9.55 billion

Downside to bear: 60.3%

Year-to-date performance: +2%

9. MSG Networks

Ticker: MSGN

Sector: Media

Market Cap: $1.65 billion

Downside to bear: 62.9%

Year-to-date performance: +23%

8. Fitbit

Ticker: FIT

Sector: Financials

Market Cap: $1.36 billion

Downside to bear: 63.4%

Year-to-date performance: -8%

7. Bed Bath & Beyond

Ticker: BBBY

Sector: Transportation

Market Cap: $1.79 billion

Downside to bear: 69.1%

Year-to-date performance: -41%

6. Abercrombie & Fitch

Ticker: ANF

Sector: Retail

Market Cap: $1.1 billion

Downside to bear: 69.6%

Year-to-date performance: +7.5%

5. Tenneco

Ticker: TEN

Sector: Consumer Discretionary/Industrials

Market Cap: $1.95 billion

Downside to bear: 76.5%

Year-to-date performance: -42%

4. Avis Budget

Ticker: CAR

Sector: Consumer Discretionary/Industrials

Market Cap: $2.295 billion

Downside to bear: 83.1%

Year-to-date performance: -33%

3. EQT

Ticker: EQT

Sector: Technology

Market Cap: $4.75 billion

Downside to bear: 83.9%

Year-to-date performance: -41%

2. Seaspan

Ticker: SSW

Sector: Transportation

Market Cap: $1.64 billion

Downside to bear: 89.2%

Year-to-date performance: +37%

1. Hertz Global

Ticker: HTZ

Sector: Retail

Market Cap: $1.61 billion

Downside to bear: 89.6%

Year-to-date performance: -20%