For Immediate Release
Chicago, IL – June 30, 2021 – Stocks in this week’s article are Manchester United Ltd. (
MANU Quick Quote MANU - Free Report) , NovoCure Ltd. ( NVCR Quick Quote NVCR - Free Report) , Palantir Technologies Inc. ( PLTR Quick Quote PLTR - Free Report) and JD.com, Inc. ( JD Quick Quote JD - Free Report) . 4 Toxic Stocks That May Disrupt Your Peace & Portfolio
Distinguishing between overpriced and fairly priced stocks is the key to successful investing. But the task is not easy as the correctly priced and overvalued stocks are mingled in a very deceptive way in the marketplace. However, investors who can pinpoint the overhyped toxic stocks and discard them at the right time are the ones who are poised to benefit.
Usually, toxic companies are vulnerable to external shocks. These companies are burdened with huge debts too. Also, unjustifiably high price of the toxic stocks is short lived as their current price exceeds their inherent value. Quite naturally, these stocks are bound to result in loss for investors over time.
Higher price of the toxic stocks can be attributed to either an irrational exuberance associated with them or some serious fundamental lacuna. If you own such stocks for long, you are likely to see a big loss in your wealth.
If you can, however, precisely spot the toxic stocks, you may gain by resorting to an investing strategy called short selling. This strategy allows you 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 figuring out stocks with growth potential, identifying toxic stocks and discarding them at the right time is the key to shield your portfolio from big losses or make 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/1755526/4-toxic-stocks-that-may-disrupt-your-peace-portfolio 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.
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Contact: Jim Giaquinto
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