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Zacks Market Edge Highlights: Netflix, Micron, Alibaba, Fiverr International and JinkoSolar

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For Immediate Release

Chicago, IL – May 27, 2021 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

Is Your Favorite Stock a Zacks Strong Sell?

Welcome to Episode #272 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is going solo to talk about what to do if your favorite stock has fallen to a Zacks Rank #5 (Strong Sell).

Should you sell?

Have an Investing Plan

First, you should already know whether you are a long-term investor or short-term trader.

The Zacks Rank is a short-term recommendation of just 1 to 3 months. While it's a good tool to use to find great stocks to buy, it doesn't work so well for those who are holding those stocks for years.

The Zacks Rank is based on analyst earnings estimate revisions. Zacks processes estimates from over 3,000 analysts on over 4400 stocks.

What are your investing goals and timeline?

Even Best Performers Have Been Strong Sells

Netflix (NFLX - Free Report) , the best performing S&P 500 stock of the last decade, has been a Zacks Rank #5 (Strong Sell) twice within that 10-year time period: in 2011 and again in 2014.

It also was a Zacks Rank #4 (Sell) just last year, in the second half of 2020.

Remember, the Zacks Rank can change daily.

Netflix is currently a Zacks #3 (Hold).

Watch for Cyclical Stocks

Cyclical stocks, those that have "cycles" where earnings grow quickly, and then contract, can be some of the most volatile with the Zacks Rank.

The semiconductors fall into this category.

Micron (MU - Free Report)  was a Zacks Rank #1 (Strong Buy) or #2 (Buy) during it's "up" cycle until mid-2018. It then fell to a Zacks #5 (Strong Sell) during its "down" cycle.

But now that earnings estimates are on the rise again, it's back to the higher Zacks Rank again.

Long-term investors should be cautious using the Rank with cyclical stocks.

Again, have an investing plan.

3 Strong Sell Stocks: What's Going On?

1.       Alibaba (BABA - Free Report)  has fallen to a Zacks Strong Sell as six earnings estimates were cut for the fiscal year in the last 60 days. All the analysts were in agreement. Shares have been underperforming the last 2 years, gaining just 35% compared to the S&P 500, which is up 48% during that time.

2.       Fiverr International (FVRR - Free Report) , the platform that connects freelancers and businesses, has fallen to a Zacks Strong Sell as 2 estimates were lowered, but just one was raised, for 2021 in the last month. The full year earnings estimate has fallen to $0.43 from $0.51. Yet earnings are expected to jump 48% in 2021.

3.       JinkoSolar (JKS - Free Report)  only has one estimate on Zacks.com. The 2021 Zacks Consensus has fallen to $1.64 from $3.53 in the last 60 days as supply chain issues hit the solar industry. Earnings are expected to fall 50% in 2021 so it's not surprising it's a Zacks Strong Sell. But what about next year?

What else do you need to know about the Zacks Strong Sell and your portfolio?

Before you panic about the Strong Sell rating, tune into this week's podcast.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the "Internet of Money" and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we're still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks' has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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