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Zacks.com featured highlights Bally's, Omnicell, Atlantica Sustainable Infrastructure and TFS Financial
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For Immediate Release
Chicago, IL – February 9, 2023 – Stocks in this week’s article are Bally’s Corp. (BALY - Free Report) , Omnicell, Inc. (OMCL - Free Report) , Atlantica Sustainable Infrastructure PLC (AY - Free Report) and TFS Financial Corp. (TFSL - Free Report) .
4 Toxic Stocks That May Not Let You Prosper
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 from big losses or make profits by short selling them. Bally’s Corp., Omnicell, Inc., Atlantica Sustainable Infrastructure PLC and TFS Financial Corp. are a few such toxic stocks.
Here are four of the 25 toxic stocks that showed up on the screen:
Bally’s is a gaming, hospitality and entertainment company that engages in casinos, resorts, and online gaming in the United States. The company offers interactive entertainment experiences through its traditional casino offerings as well as its online sportsbook, bingo, daily fantasy and iCasino.
The Zacks Consensus Estimate for BALY’s 2023 bottom line is pegged at a loss of 2 cents per share, implying a year-over-year deterioration of 102%. The consensus mark has moved south from earnings of 15 cents per share to a loss of 2 cents per share over the past 30 days. Bally’s missed earnings estimates in two out of the last four quarters for as many misses, with the average negative surprise being 29.5%. The company carries a Zacks Rank #5 (Strong Sell).
Omnicell develops and markets end-to-end automation solutions for the medication-use process. These automation solutions contain medication and supply dispensing systems, central pharmacy storage, retrieval and packaging solutions, a bedside automation solution, a physician order management solution, a decision support application and a web-based procurement application.
The Zacks Consensus Estimate for Omnicell’s 2023 earnings per share implies a year-over-year decline of 29%. The consensus mark for 2023 EPS has moved south by 8 cents over the past 30 days. Omnicell missed earnings estimates in two out of the last four quarters for as many misses. The stock currently carries a Zacks Rank #5 and has a VGM Score of F.
Atlantica Sustainable provides renewable energy solutions. The firm owns and operates natural gas fields, as well as offers transmission, transportation infrastructures and water assets solutions. Formerly known as Atlantica Yield plc, AY is based in Brentford, UK. Atlantica Sustainable has fallen short of earnings estimates in each of the last four quarters, with the average negative surprise being 99%.
The Zacks Consensus Estimate for Atlantica Yield’s 2022 bottom line is pegged at a loss of 30 cents a share and implies a year-over-year deterioration of 15.4%. The consensus mark for 2023 earnings has moved south by 22 cents over the past 30 days. AY currently carries a Zacks Rank #5 and has a VGM Score of C.
TFS Financial is a federally chartered stock holding company that conducts its activities through its wholly owned subsidiaries. The line of business of the company is retail consumer banking, mortgage lending, deposit gathering and other financial services. The company's operating subsidiaries include Third Federal Savings and Loan Association of Cleveland and Third Capital, Inc.
The Zacks Consensus Estimate for TFS Financial’s fiscal 2024 earnings per share implies a year-over-year decline of 7.4%. The consensus mark for fiscal 2024 EPS has moved south by 8 cents over the past 30 days. The stock currently carries a Zacks Rank #4 (Sell) 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/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights Bally's, Omnicell, Atlantica Sustainable Infrastructure and TFS Financial
For Immediate Release
Chicago, IL – February 9, 2023 – Stocks in this week’s article are Bally’s Corp. (BALY - Free Report) , Omnicell, Inc. (OMCL - Free Report) , Atlantica Sustainable Infrastructure PLC (AY - Free Report) and TFS Financial Corp. (TFSL - Free Report) .
4 Toxic Stocks That May Not Let You Prosper
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 from big losses or make profits by short selling them. Bally’s Corp., Omnicell, Inc., Atlantica Sustainable Infrastructure PLC and TFS Financial Corp. are a few such toxic stocks.
Here are four of the 25 toxic stocks that showed up on the screen:
Bally’s is a gaming, hospitality and entertainment company that engages in casinos, resorts, and online gaming in the United States. The company offers interactive entertainment experiences through its traditional casino offerings as well as its online sportsbook, bingo, daily fantasy and iCasino.
The Zacks Consensus Estimate for BALY’s 2023 bottom line is pegged at a loss of 2 cents per share, implying a year-over-year deterioration of 102%. The consensus mark has moved south from earnings of 15 cents per share to a loss of 2 cents per share over the past 30 days. Bally’s missed earnings estimates in two out of the last four quarters for as many misses, with the average negative surprise being 29.5%. The company carries a Zacks Rank #5 (Strong Sell).
Omnicell develops and markets end-to-end automation solutions for the medication-use process. These automation solutions contain medication and supply dispensing systems, central pharmacy storage, retrieval and packaging solutions, a bedside automation solution, a physician order management solution, a decision support application and a web-based procurement application.
The Zacks Consensus Estimate for Omnicell’s 2023 earnings per share implies a year-over-year decline of 29%. The consensus mark for 2023 EPS has moved south by 8 cents over the past 30 days. Omnicell missed earnings estimates in two out of the last four quarters for as many misses. The stock currently carries a Zacks Rank #5 and has a VGM Score of F.
Atlantica Sustainable provides renewable energy solutions. The firm owns and operates natural gas fields, as well as offers transmission, transportation infrastructures and water assets solutions. Formerly known as Atlantica Yield plc, AY is based in Brentford, UK. Atlantica Sustainable has fallen short of earnings estimates in each of the last four quarters, with the average negative surprise being 99%.
The Zacks Consensus Estimate for Atlantica Yield’s 2022 bottom line is pegged at a loss of 30 cents a share and implies a year-over-year deterioration of 15.4%. The consensus mark for 2023 earnings has moved south by 22 cents over the past 30 days. AY currently carries a Zacks Rank #5 and has a VGM Score of C.
TFS Financial is a federally chartered stock holding company that conducts its activities through its wholly owned subsidiaries. The line of business of the company is retail consumer banking, mortgage lending, deposit gathering and other financial services. The company's operating subsidiaries include Third Federal Savings and Loan Association of Cleveland and Third Capital, Inc.
The Zacks Consensus Estimate for TFS Financial’s fiscal 2024 earnings per share implies a year-over-year decline of 7.4%. The consensus mark for fiscal 2024 EPS has moved south by 8 cents over the past 30 days. The stock currently carries a Zacks Rank #4 (Sell) 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/2051429/4-toxic-stocks-that-may-not-let-you-prosper
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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Email: pr@zacks.com
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/performance for information about the performance numbers displayed in this press release.