Stock Market Recession 2022: 5 Stocks to Sell Now According to Analysts

3. Leggett & Platt, Incorporated (NYSE:LEG)

Number of Hedge Fund Holders: 21

Leggett & Platt, Incorporated (NYSE:LEG) is a Missouri-based retailer of bedding, furniture, flooring, and textile products. The company sells its merchandise to big box and e-commerce retailers, bedding brands, department stores, and home improvement centers. As a recession looms over the horizon, demand for home improvement products is widely sidelined by customers who allocate budgets to staples, which negatively impacts companies like Leggett & Platt, Incorporated (NYSE:LEG). 

On May 4, Raymond James analyst Bobby Griffin downgraded Leggett & Platt, Incorporated (NYSE:LEG) to Market Perform from Outperform without a price target. The downgrade is due to the recent slowdown and uncertainty around home durables demand in 2022, in addition to further complications in the global supply chain creating a more balanced risk/reward scenario, which is not a reflection on Q1 results, the analyst told investors in a research note. He does not see a high likelihood of material upside to numbers over the short-term as the company guidance already accounts for a rebound in volumes.

According to Insider Monkey’s Q4 data, Leggett & Platt, Incorporated (NYSE:LEG) was found in the public stock portfolios of 21 hedge funds, holding combined stakes worth $136.7 million. Israel Englander’s Millennium Management is the largest shareholder of the company, with a position worth $47.8 million.