For Immediate Release
Chicago, IL – December 1, 2020 – Stocks in this week’s article are Aramark (
ARMK Quick Quote ARMK - Free Report) , Alteryx, Inc. ( AYX Quick Quote AYX - Free Report) , Varex Imaging Corporation ( VREX Quick Quote VREX - Free Report) and Cameco Corporation ( CCJ Quick Quote CCJ - Free Report) . Dump These 4 Toxic Stocks Before It's Too Late
Just like selecting good and undervalued stocks on a regular basis is one of the keys to investing success, identifying and proactively getting rid of toxic stocks is also crucial to maximizing portfolio returns.
A toxic stock is basically one that trades at a price not supported by its fundamental strength. Moreover, these stocks generally have a high level of debt. The price of these stocks is artificially inflated. Irrational exuberance associated with a stock may lead to overpricing. Owning such stocks for an inordinate period could lead to erosion of wealth for an investor.
However, if you can correctly identify the toxic stocks, you may also gain by resorting to an investment technique called short selling. In short selling, one can sell an un-owned stock and then purchase it when the price falls. Naturally, short selling has excelled in bear markets, while it typically loses money in bull markets.
As such, identifying toxic stocks is also imperative in shielding one’s portfolio from massive losses or making profits by short selling them.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1119227/dump-these-4-toxic-stocks-before-its-too-late 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
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Contact: Jim Giaquinto
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