4 Downgraded Stocks I'd Avoid at All Costs
July 13, 2021 at 14:07 PM EDT
As earnings season kicks into gear and more economic data gets released this week, we could see some volatility in the markets. That's why investors should avoid stocks that have been recently downgraded to a Sell or Strong Sell by our POWR Ratings system. Accolade (ACCD), Borr Drilling (BORR), Livent Corporation (LTHM), and LiveXLive Media (LIVX) are four such companies.
With the market closing lower today as investors digested corporate earnings reports and higher-than-anticipated inflation data, now is a good time to make sure you are invested in the right stocks. But, avoiding the wrong stocks is just as important.
That's why investors should consider a stock's POWR Ratings when making investment decisions. The POWR ratings take into account 118 different factors when assigning ratings. Investors should make sure to avoid stocks that are rated a Sell or Strong Sell.
ACCD provides tech-enabled, personalized solutions that make it easier to understand, navigate and use the healthcare system. Headquartered in Seattle, ACCD is trading at $53.10.
ACCD has an overall grade of F, which translates into a Strong Sell rating in our POWR Ratings system. The company has a grade of D grades in the Quality, Sentiment, Value, and Growth components. Click here to find out how ACCD grades out in the Momentum and Stability components.
Out of 74 stocks in the Internet industry, ACCD is ranked 71st. You can find top stocks in this industry by clicking here.
Borr Drilling (BORR)
BORR, a drilling business in the oil and gas sector, is now setting its sights on acquiring drilling assets in addition to operating them. Headquartered in Hamilton, Bermuda, BORR has a high beta of 5.89, which means it's extremely volatile. The stock is trading at about half of its 52-week high of $1.67.
BORR has an overall grade of F and a Strong Sell rating in our POWR Ratings system. The company has a grade of F in the Quality component and Ds in the Stability, Growth. and Sentiment components. You can see how BORR fares in the rest of the components, including Momentum and Value, by clicking here.
BORR is ranked last out of 12 stocks in its Energy - Drilling industry. You can find the top stocks in this industry by clicking here. The stock's price returns are almost all in the red, meaning negative. For instance, the stock is down 11% over the past year.
Livent Corporation (LTHM)
LTHM makes and distributes lithium. The company's lithium chemicals are used in all sorts of applications and products, including polymers, pharmaceuticals, agrochemicals, batteries, aerospace alloys, and more.
LTHM is clearly overvalued at its current price of $20.82 as it has a forward P/E ratio of 181.47. The stock's beta is also high at 2.16. LTHM has an overall grade of F, translating into a Strong Sell in our POWR Ratings system. The company has a grade of F in the Sentiment and Value components Ds in the Quality and Stability components. Click here to learn how the stock fares in the Momentum and Growth components.
Of the 39 stocks in the Industrial - Metals industry, LTHM is ranked 35th. Click here to find top stocks in this industry. Analysts are not high on the stock, setting an average target price of $11.70 for the stock. If LTHM falls to this price point, it will have slid by nearly 38%.
LiveXLive Media (LIVX)
LIVX provides web networks for music and music-related content. In short, LIVX is a web-based space for music fans to watch live performances along with premium original music, industry exclusives, and more.
LIVX has an overall grade of F and a Strong Sell rating in our POWR Ratings system. The company has a grade of F in the Quality component and Ds in the Sentiment and Stability components. You can find out how LIVX grades out in the Momentum, Value, and Growth components by clicking here.
LIVX is ranked toward the bottom of its Internet – Services industry, slotting in at 40th out of 43 stocks. You can find the top stocks in this industry by clicking here. The stock is down 15% for the month.
ACCD shares were unchanged in after-hours trading Tuesday. Year-to-date, ACCD has gained 22.51%, versus a 17.27% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.4 Downgraded Stocks I'd Avoid at All Costs appeared first on StockNews.com