These economic recovery plays still have more room to run, Barclays says

Traders work on the floor of the New York Stock Exchange.

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Positive news about Covid-19 vaccine candidates has helped fuel a rally in reopening plays in recent weeks, but some names are still undervalued, according to Barclays.

The firm combed through its basket of stocks where Covid-19 had been a short-term negative and identified the names where valuations are the lowest relative to recent history. Barclays said in a note that these beaten-down stocks "could outperform in an economic recovery as things normalize."

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