The recent supply chain disruptions have caused massive distress to several companies. As the crisis is not expected to wind down anytime soon, we believe companies such as Nike Inc. (NYSE:NKE), Peloton Interactive (NASDAQ:PTON), and Bed Bath and Beyond (BBBY), are best avoided now.As the pandemic-induced constraints are easing, the demand for energy, labor, and transport has surged. This sudden acceleration in demand is putting a huge strain on supply chains and affecting several companies.
Moreover, despite the change in administrative power, Trump-imposed tariffs on about $350 billion of Chinese-made products continue to remain in place, leading to high costs for importers. While the Biden administration comprehensively evaluates US-China trade policy, the pressure to address the problem is mounting as the global supply chain problems worsen.
Shares of Nike Inc. (NKE), Peloton Interactive Inc . (PTON), and Bed Bath and Beyond (BBBY) have fallen due to the ongoing supply chain disruptions, as investors expected their financials to be impacted in the near term. So, it could be wise to avoid these overvalued stocks.