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Zacks.com featured highlights include: Casa Systems, Stoneridge, Shake Shack and Assai Atacadista
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For Immediate Release
Chicago, IL – November 9, 2021 – Stocks in this week’s article are Casa Systems, Inc. , Stoneridge, Inc. (SRI - Free Report) , Shake Shack, Inc. (SHAK - Free Report) and Sendas Distribuidora S.A. (ASAI - Free Report) .
Discard These 4 Toxic Stocks to Prevent Painful Losses
Investors who can appropriately distinguish between overblown/inflated toxic stocks and the fairly priced stocks see success at the end. But, telling one from the other in such cases is no mean feat. Hence, one should know how to identify toxic stocks and get rid of those at the right time.
Usually, overpriced toxic stocks are vulnerable to external shocks and are burdened with huge debt levels. The price of toxic stocks is unreasonably high. The artificially high price of the toxic stocks is only temporary as the intrinsic value of the same is lower than the current bloated price.
The unrealistically high price of toxic stocks can be due to either an irrational exuberance associated with them or some fundamental drawbacks. Owning such stocks for a long period of time can be detrimental to investors and may result in huge erosion of wealth.
Nonetheless, investors may profit from the precise identification of toxic stocks with the help of an investing strategy known as short selling. This strategy allows them 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, identifying toxic stocks and getting rid of them at the right time is the key to guard your portfolio from big losses. Profits can be made by short selling them.
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 include: Casa Systems, Stoneridge, Shake Shack and Assai Atacadista
For Immediate Release
Chicago, IL – November 9, 2021 – Stocks in this week’s article are Casa Systems, Inc. , Stoneridge, Inc. (SRI - Free Report) , Shake Shack, Inc. (SHAK - Free Report) and Sendas Distribuidora S.A. (ASAI - Free Report) .
Discard These 4 Toxic Stocks to Prevent Painful Losses
Investors who can appropriately distinguish between overblown/inflated toxic stocks and the fairly priced stocks see success at the end. But, telling one from the other in such cases is no mean feat. Hence, one should know how to identify toxic stocks and get rid of those at the right time.
Usually, overpriced toxic stocks are vulnerable to external shocks and are burdened with huge debt levels. The price of toxic stocks is unreasonably high. The artificially high price of the toxic stocks is only temporary as the intrinsic value of the same is lower than the current bloated price.
The unrealistically high price of toxic stocks can be due to either an irrational exuberance associated with them or some fundamental drawbacks. Owning such stocks for a long period of time can be detrimental to investors and may result in huge erosion of wealth.
Nonetheless, investors may profit from the precise identification of toxic stocks with the help of an investing strategy known as short selling. This strategy allows them 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, identifying toxic stocks and getting rid of them at the right time is the key to guard your portfolio from big losses. Profits can be made 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/1825094/discard-these-4-toxic-stocks-to-prevent-painful-losses
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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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.