The market is quite strong and approaching new highs from a couple of weeks ago. Despite the bullish conditions, some stocks are showing signs of weakness.
Our POWR Ratings can help sort through the universe of stocks to find the strongest and weakest. Plenty of stocks are poised to either stagnate or drop even lower in the days, weeks and months ahead. Some of these stocks are worthy of shorting while others should simply be removed from your portfolio.
Here is a quick look at four of the latest POWR Ratings downgrades: Arvinas (ARVN), Eyenovia (EYEN), World Wrestling Entertainment (WWE), and Coherent (COHR).
This biopharma company serves those battling diseases that prove debilitating or life-threatening. ARVN participates in the creation and development of ARVN. The company also plays a role in commercializing these therapies. In short, ARVN’s creative solutions combat proteins that cause disease. Take a look at the ARVN POWR Ratings and you will find it has "F" grades in the Buy & Hold Grade and Trade Grade components.
ARVN is ranked in the bottom third of nearly 250 Medical - Pharmaceuticals stocks. The stock has a year-to-date price return of -42.52%, a six-month price return of -47.34%, and a three-month price return of -5.93%. ARVN has fallen off a cliff since breaking through the $55 level this past June.
The stock's price has been chopped in half in the months that followed. The abstract detailing ARVN's clinical-stage drug to treat prostate cancer revealed disappointing results and ARVN has not recovered since. Stay far away from this stock until some positive news about its drugs is released.
This clinical-stage biopharma business creates therapeutics to treat eye diseases. The majority of EYEN’s market is in the United States. Examples of EYEN products include MicroStat, MicroPine, MicroTears, and MicroProst. Each of these products is in the clinical stage.
EYEN has "F" grades in the Buy & Hold Grade and Trade Grade POWR Rating components. The stock is ranked 168th of 240 in the Medical - Pharmaceuticals category. EYEN has a year-to-date price return of -24.33% along with a three-month price return of -6.87% and a one-month price return of -3.97%.
EYEN moved back toward its pre-COVID trading level of $4 to $5 yet dropped right back down to $3 this past autumn. Investors would be wise to avoid EYEN until its POWR Rating components improve.
World Wrestling Entertainment (WWE)
WWE, once a blazing hot stock, has fallen back to Earth, largely due to a rise in competition. All Elite Wrestling, financed by Shahid Khan, the owner of the Jacksonville Jaguars, is taking a significant amount of market share away from WWE.
Though WWE also makes money from video games, merchandising, and other avenues, it has been quite a disappointment across the past year, dropping from $65 to $42. WWE was declared “essential business” in the state of Florida yet it is not selling many tickets to events in other states.
Steer clear of WWE until the company can start selling tickets to in-person events throughout the United States and elsewhere.
Photonics is a big business yet COHR is not excelling in this space. The company supplies photonics solutions across a litany of scientific and commercial research applications. In short, COHR designs makes, and markets lasers including systems based on lasers and optics.
The POWR Ratings reveal COHR has an "F" Trade Grade along with a "D" Peer Grade. Furthermore, COHR is ranked 40th of 53 stocks in the Technology - Communication/Networking space. COHR has a year-to-date price return of -26.02% along with a six-month price return of -15.05%. The company's three-year price return is -61.35%.
COHR appeared to be on its way back toward its pre-COVID pricing this past summer yet the stock topped out around $155 and has struggled since. The company's weak earnings report released in early September certainly did not help matters. Refrain from investing in this stock until some positive news comes out of the COHR camp.
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WWE shares were trading at $42.58 per share on Wednesday afternoon, up $0.55 (+1.31%). Year-to-date, WWE has declined -33.78%, versus a 14.22% 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 to AVOID! appeared first on StockNews.com