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Zacks.com featured highlights CoStar, Definitive Healthcare, Montauk Renewables and Westrock Coffee
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 28, 2023 – Stocks in this week’s article are CoStar Group (CSGP - Free Report) , Definitive Healthcare Corp. (DH - Free Report) , Montauk Renewables Inc. (MNTK - Free Report) and Westrock Coffee Co. (WEST - Free Report) .
4 Toxic Stocks You Should Eliminate from Your Portfolio
The ability to differentiate overhyped stocks from fairly priced ones makes investing foolproof. But in the complex marketplace, correctly priced stocks and over-bubble stocks are mingled in such a way that making a distinction between them becomes very difficult. Nevertheless, precisely pinpointing bloated toxic stocks on a regular basis and abandoning them at the right time is one of the secrets to a winning investment strategy.
Toxic companies are usually vulnerable to external shocks and are characterized by high debt loads. The hype surrounding irrationally high-priced toxic stocks is usually short-lived as their current price exceeds the intrinsic value. These toxic stocks are bound to result in a loss for investors over time.
Higher prices of toxic stocks can be ascribed to either an irrational exuberance associated with them or some serious fundamental drawbacks. If you own such bloated stocks for a long period of time, you are bound to see huge erosion of wealth.
However, if you can correctly pick such 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 identifying stocks with growth potential, pinpointing toxic stocks and discarding them at the right time is the key to guard your portfolio from big losses. CoStar Group, Definitive Healthcare Corp., Montauk Renewables Inc. and Westrock Coffee Co. are a few such toxic stocks.
Here are four of the 25 toxic stocks that showed up on the screen:
CoStar Group is a provider of information, analytics and online marketplaces to the commercial real estate industry in the United States and the U.K. The Zacks Consensus Estimate for CSGP’s 2023 EPS has moved south by 7 cents over the past 30 days. The consensus mark for 2024 EPS has been revised down by 5 cents over the past 30 days. CoStar Group currently carries a Zacks Rank #5 (Strong Sell) and has a VGM Score of F.
Definitive Healthcare provides healthcare commercial intelligence. The company's SaaS platform creates new paths in the healthcare market. The Zacks Consensus Estimate for DH’s 2023 EPS has moved south by 1 cent over the past 30 days. The consensus mark for 2024 EPS has been revised down by 4 cents over the past 30 days. Definitive Healthcare currently carries a Zacks Rank #4 (Sell) and has a VGM Score of F.
Montauk is a fully-integrated renewable energy company. It specializes in the management, recovery and conversion of biogas into renewable energy. The Zacks Consensus Estimate for MNTK’s 2023 EPS has moved south by 45 cents over the past 30 days. The consensus mark for 2024 EPS has been revised down by 55 cents over the past 30 days. Montauk currently carries a Zacks Rank #4 and has a VGM Score of C.
Westrock is an integrated coffee, tea, flavors, extracts and ingredients solutions provider principally in the United States. The Zacks Consensus Estimate for WEST’s 2023 EPS has moved south by 7 cents over the past 30 days. The consensus mark for 2024 EPS has been revised down by 26 cents over the past 30 days. Westrock currently carries a Zacks Rank #4 and has a VGM Score of D.
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 CoStar, Definitive Healthcare, Montauk Renewables and Westrock Coffee
For Immediate Release
Chicago, IL – March 28, 2023 – Stocks in this week’s article are CoStar Group (CSGP - Free Report) , Definitive Healthcare Corp. (DH - Free Report) , Montauk Renewables Inc. (MNTK - Free Report) and Westrock Coffee Co. (WEST - Free Report) .
4 Toxic Stocks You Should Eliminate from Your Portfolio
The ability to differentiate overhyped stocks from fairly priced ones makes investing foolproof. But in the complex marketplace, correctly priced stocks and over-bubble stocks are mingled in such a way that making a distinction between them becomes very difficult. Nevertheless, precisely pinpointing bloated toxic stocks on a regular basis and abandoning them at the right time is one of the secrets to a winning investment strategy.
Toxic companies are usually vulnerable to external shocks and are characterized by high debt loads. The hype surrounding irrationally high-priced toxic stocks is usually short-lived as their current price exceeds the intrinsic value. These toxic stocks are bound to result in a loss for investors over time.
Higher prices of toxic stocks can be ascribed to either an irrational exuberance associated with them or some serious fundamental drawbacks. If you own such bloated stocks for a long period of time, you are bound to see huge erosion of wealth.
However, if you can correctly pick such 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 identifying stocks with growth potential, pinpointing toxic stocks and discarding them at the right time is the key to guard your portfolio from big losses. CoStar Group, Definitive Healthcare Corp., Montauk Renewables Inc. and Westrock Coffee Co. are a few such toxic stocks.
Here are four of the 25 toxic stocks that showed up on the screen:
CoStar Group is a provider of information, analytics and online marketplaces to the commercial real estate industry in the United States and the U.K. The Zacks Consensus Estimate for CSGP’s 2023 EPS has moved south by 7 cents over the past 30 days. The consensus mark for 2024 EPS has been revised down by 5 cents over the past 30 days. CoStar Group currently carries a Zacks Rank #5 (Strong Sell) and has a VGM Score of F.
Definitive Healthcare provides healthcare commercial intelligence. The company's SaaS platform creates new paths in the healthcare market. The Zacks Consensus Estimate for DH’s 2023 EPS has moved south by 1 cent over the past 30 days. The consensus mark for 2024 EPS has been revised down by 4 cents over the past 30 days. Definitive Healthcare currently carries a Zacks Rank #4 (Sell) and has a VGM Score of F.
Montauk is a fully-integrated renewable energy company. It specializes in the management, recovery and conversion of biogas into renewable energy. The Zacks Consensus Estimate for MNTK’s 2023 EPS has moved south by 45 cents over the past 30 days. The consensus mark for 2024 EPS has been revised down by 55 cents over the past 30 days. Montauk currently carries a Zacks Rank #4 and has a VGM Score of C.
Westrock is an integrated coffee, tea, flavors, extracts and ingredients solutions provider principally in the United States. The Zacks Consensus Estimate for WEST’s 2023 EPS has moved south by 7 cents over the past 30 days. The consensus mark for 2024 EPS has been revised down by 26 cents over the past 30 days. Westrock currently carries a Zacks Rank #4 and has a VGM Score of D.
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/2070652/4-toxic-stocks-that-you-should-eliminate-from-your-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.
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.