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Zacks.com featured highlights include JDefinitive Healthcare, Cinemark Holdings, MeridianLink and Spirit AeroSystems
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For Immediate Release
Chicago, IL – September 8, 2022 – Stocks in this week’s article are Definitive Healthcare Corp (DH - Free Report) , Cinemark Holdings, Inc. (CNK - Free Report) , MeridianLink Inc. (MLNK - Free Report) and Spirit AeroSystems Holdings, Inc. (SPR - Free Report) .
4 Toxic Stocks that May Give You a Tough Time
Since the beginning of 2022, markets have been bearing the brunt of macroeconomic and geopolitical uncertainty. Rising interest rates and inflationary concerns are keeping investors at the edge. In this volatile market environment, new long trade initiations should be kept to a minimum and targeted only toward the top-performing industry groups and individual stocks.
The most important thing during bear markets is avoiding big errors.Regardless of your market approach to investing or trading, there is only one way to protect your portfolio from a large loss. Selling at a small loss before it snowballs into a large loss is the only way to ensure that a devastating drawdown does not occur within the context of a portfolio.
Considering the current market mood filled with ambiguity, it's as important to get rid of fundamentally weak toxic stocks as it is to invest in attractively valued companies possessing fundamental strength.
Toxic companies are usually characterized by huge debt loads and are vulnerable to external shocks. These stocks might illusively scale lofty heights in a given time period but the good show doesn't last for these overblown toxic stocks, as their current price is not justified by their fundamental strength. Accurately identifying such bloated stocks and getting rid of them at the right time can protect your portfolio.
Overpricing of these toxic stocks can be attributed to either an irrational enthusiasm surrounding them or some serious fundamental drawbacks. If you own such bubble stocks for an inordinate period of time, you are bound to see massive erosion of wealth.
Nonetheless, if you can precisely spot such toxic stocks, you may gain by resorting to an investing strategy called short selling. This strategy allows one to sell a stock first and then buy it when the price falls. While short selling excels in bear markets, it typically loses money in bull markets.
So, just like identifying stocks with growth potential, pinpointing toxic stocks and offloading them at the right time is crucial to guard one's portfolio against big losses or make profits by short selling them. Definitive Healthcare Corp, Cinemark Holdings, Inc., MeridianLink Inc. and Spirit AeroSystems Holdings, Inc. are a few such toxic stocks.
Here are four of the 24 toxic stocks that showed up on the screen:
Definitive Healthcare: Based in Framingham, DH provides healthcare commercial intelligence. The company's SaaS platform creates new paths in the healthcare market. The company currently carries a Zacks Rank #5 (Strong Sell) and has a VGM Score of D. The Zacks Consensus Estimate for Definitive Healthcare for 2022 and 2023 earnings has moved south by 3 cents and 6 cents, respectively, in the past 60 days.
Cinemark Holdings: Based in Plano, Cinemark is one of the leaders in the motion picture exhibition industry. It operates 521 theaters with 5,855 screens in 42 states in the United States and internationally in 15 countries, mainly in South and Central America. The Zacks Consensus Estimate for Cinemark's 2022 bottom line is pegged at a loss of $1.42 a share. The consensus mark for 2022 loss has widened by 98 cents in the past 30 days. CNK currently carries a Zacks Rank #4 (Sell).
MeridianLink: Based in Costa Mesa, MeridianLink is a cloud-based technology company, which enables banks, credit unions, mortgage lenders, specialty lending providers and consumer reporting agencies to streamline loan decision-making, loan origination, and customer collection workflows. The Zacks Consensus Estimate for MLNK 2022 and 2023 earnings has moved south by 6 cents and 9 cents, respectively, in the past 30 days. The stock currently carries a Zacks Rank #4 and a VGM Score of F.
Spirit AeroSystems: Based in Wichita, Spirit AeroSystems engineers, manufactures, and markets commercial aerostructures. The Zacks Consensus Estimate for the 2022 bottom line is pegged at a loss of $1.91 a share, widening from $1.25 a share 30 days ago. The consensus mark for the 2022 bottom line has moved south by 36% over the past 30 days. The company missed earnings in three of the trailing four quarters, while topping once, with the average negative surprise being 100.3%. SPR currently carries a Zacks Rank #4 and has a VGM Score of F.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include JDefinitive Healthcare, Cinemark Holdings, MeridianLink and Spirit AeroSystems
For Immediate Release
Chicago, IL – September 8, 2022 – Stocks in this week’s article are Definitive Healthcare Corp (DH - Free Report) , Cinemark Holdings, Inc. (CNK - Free Report) , MeridianLink Inc. (MLNK - Free Report) and Spirit AeroSystems Holdings, Inc. (SPR - Free Report) .
4 Toxic Stocks that May Give You a Tough Time
Since the beginning of 2022, markets have been bearing the brunt of macroeconomic and geopolitical uncertainty. Rising interest rates and inflationary concerns are keeping investors at the edge. In this volatile market environment, new long trade initiations should be kept to a minimum and targeted only toward the top-performing industry groups and individual stocks.
The most important thing during bear markets is avoiding big errors.Regardless of your market approach to investing or trading, there is only one way to protect your portfolio from a large loss. Selling at a small loss before it snowballs into a large loss is the only way to ensure that a devastating drawdown does not occur within the context of a portfolio.
Considering the current market mood filled with ambiguity, it's as important to get rid of fundamentally weak toxic stocks as it is to invest in attractively valued companies possessing fundamental strength.
Toxic companies are usually characterized by huge debt loads and are vulnerable to external shocks. These stocks might illusively scale lofty heights in a given time period but the good show doesn't last for these overblown toxic stocks, as their current price is not justified by their fundamental strength. Accurately identifying such bloated stocks and getting rid of them at the right time can protect your portfolio.
Overpricing of these toxic stocks can be attributed to either an irrational enthusiasm surrounding them or some serious fundamental drawbacks. If you own such bubble stocks for an inordinate period of time, you are bound to see massive erosion of wealth.
Nonetheless, if you can precisely spot such toxic stocks, you may gain by resorting to an investing strategy called short selling. This strategy allows one to sell a stock first and then buy it when the price falls. While short selling excels in bear markets, it typically loses money in bull markets.
So, just like identifying stocks with growth potential, pinpointing toxic stocks and offloading them at the right time is crucial to guard one's portfolio against big losses or make profits by short selling them. Definitive Healthcare Corp, Cinemark Holdings, Inc., MeridianLink Inc. and Spirit AeroSystems Holdings, Inc. are a few such toxic stocks.
Here are four of the 24 toxic stocks that showed up on the screen:
Definitive Healthcare: Based in Framingham, DH provides healthcare commercial intelligence. The company's SaaS platform creates new paths in the healthcare market. The company currently carries a Zacks Rank #5 (Strong Sell) and has a VGM Score of D. The Zacks Consensus Estimate for Definitive Healthcare for 2022 and 2023 earnings has moved south by 3 cents and 6 cents, respectively, in the past 60 days.
Cinemark Holdings: Based in Plano, Cinemark is one of the leaders in the motion picture exhibition industry. It operates 521 theaters with 5,855 screens in 42 states in the United States and internationally in 15 countries, mainly in South and Central America. The Zacks Consensus Estimate for Cinemark's 2022 bottom line is pegged at a loss of $1.42 a share. The consensus mark for 2022 loss has widened by 98 cents in the past 30 days. CNK currently carries a Zacks Rank #4 (Sell).
MeridianLink: Based in Costa Mesa, MeridianLink is a cloud-based technology company, which enables banks, credit unions, mortgage lenders, specialty lending providers and consumer reporting agencies to streamline loan decision-making, loan origination, and customer collection workflows. The Zacks Consensus Estimate for MLNK 2022 and 2023 earnings has moved south by 6 cents and 9 cents, respectively, in the past 30 days. The stock currently carries a Zacks Rank #4 and a VGM Score of F.
Spirit AeroSystems: Based in Wichita, Spirit AeroSystems engineers, manufactures, and markets commercial aerostructures. The Zacks Consensus Estimate for the 2022 bottom line is pegged at a loss of $1.91 a share, widening from $1.25 a share 30 days ago. The consensus mark for the 2022 bottom line has moved south by 36% over the past 30 days. The company missed earnings in three of the trailing four quarters, while topping once, with the average negative surprise being 100.3%. SPR currently carries a Zacks Rank #4 and has a VGM Score of F.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1977354/4-toxic-stocks-that-may-give-you-a-tough-time
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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/performancefor information about the performance numbers displayed in this press release.