It’s time to promote stocks which might be seeing stock pile up on the similar time as consumer demand slows, in response to Adam Parker of Trivariate Research. Inventory ranges have gotten the important thing efficiency indicator for equities as corporations proceed to cope with world provide chain points made worse by the pandemic, in response to a analysis be aware from Trivariate. “Inventory levels are a growing problem: For large cap stocks, inventory-to-sales is near all-time highs,” wrote Parker, who was previously the chief U.S. fairness strategist at Morgan Stanley. “As production catches up to consumption, we are now seeing some earnings reports where strong demand will be required to burn off growing inventory,” he added. Rising inventories are afflicting industrial stocks, together with auto components, family items and sure technology merchandise, in response to the Trivariate. Meanwhile, sectors the place the agency is not anxious about stock ranges are the vitality and metals and mining industries. Stocks that buyers ought to promote are prone to “surprisingly-negative” future earnings revisions, in response to Trivariate. The agency recognized corporations with excessive stock, excessive capital expenditures and declining income progress over the following yr. Here are 9 promote concepts from the agency. Semiconductor corporations have excessive inventory-to-sales ranges, however Parker mentioned the “real concern” is that manufacturing will exceed demand later this yr ought to present backlogs get canceled, in response to the be aware. Trivariate named Nvidia and Intel as promote concepts. Consumer staple inventory Clorox was additionally tagged as a promote. Consumer staples stocks have inventory-to-sales ranges which might be nearing all-time highs, the be aware mentioned. Industrials stocks such as Stanley Black & Decker are “potentially problematic,” in response to the be aware, reporting the very best inventory-to-sales ranges because the financial disaster. Other stocks named embody Nucor, Best Buy, Scotts Miracle-Gro, Quest Diagnostics and Gap. —CNBC’s Michael Bloom contributed to this report.