We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks.com featured highlights include AngioDynamics, Definitive Healthcare, Casella Waste Systems and Enviva
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 17, 2023 – Stocks in this week’s article are AngioDynamics Inc. (ANGO - Free Report) , Definitive Healthcare Corp. (DH - Free Report) , Casella Waste Systems, Inc. (CWST - Free Report) and Enviva Inc. (EVA - Free Report) .
4 Toxic Stocks Detrimental to Your Portfolio's Health
Investors need to be mindful of the performance of each stock present in their portfolios to maximize profit while keeping the associated risk at bay. Predominantly, toxic stocks are the biggest contributors of risks in any portfolio. Now, the question is, what are toxic stocks and how to identify them?
Companies usually take debts to expand their business and eventually reward their shareholder through dividends. But there are some companies that have high debts on their balance sheet and are unable to translate those high debts into profits. The struggle to generate revenues is apparent in the financial statements and is a telltale sign of toxic stocks.
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. This is because 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.
In some instances, investors may fail to identify toxic stocks despite meticulously studying financial statements because of misleading information. In such cases, diversification can prove to be a savior. Accumulating stocks from different sectors with low correlation is a key to diversification. A well-diversified portfolio is least likely to suffer from the adverse outcome of a toxic stock present in the portfolio.
If investors can successfully identify a toxic stock in their portfolio, they can short-sell it and buy it again at a lower price to generate profits.
AngioDynamics Inc., Definitive Healthcare Corp., Casella Waste Systems, Inc. and Enviva Inc. are a few toxic stocks that you should dump from your portfolio.
Here are four of the 29 toxic stocks that showed up on the screen:
AngioDynamics designs, manufactures and sells a wide range of medical, surgical and diagnostic devices. The company's devices are generally used in minimally invasive, image-guided procedures. The Zacks Consensus Estimate for ANGO's 2023 bottom line is pegged at a loss of 4 cents per share. The consensus mark has moved south from earnings of 1 cent per share to a loss of 4 cents per share over the past 30 days. AngioDynamics missed earnings estimates in two out of the last four quarters, matched once and beat on the other, with the average negative surprise being 50%. The company 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 bottom line is pegged at a profit of 22 cents per share, implying a year-over-year deterioration of 4.35%. The consensus mark has moved south from earnings of 23 cents per share over the past 60 days. Definitive Healthcare beat earnings estimates in all four trailing quarters, with the average surprise being 35%. The company carries a Zacks Rank #4 (Sell) and has a VGM Score of F.
Casella Waste is a regional, integrated solid waste services company that provides collection, transfer, disposal and recycling services, generates steam and manufactures finished products utilizing recyclable materials primarily throughout the eastern portion of the United States and parts of Canada. The Zacks Consensus Estimate for the firm's 2023 earnings has moved south from $1.31 per share to earnings of $1.21 per share over the past 60 days. The company carries a Zacks Rank #4 and has a VGM Score of C.
Enviva is a producer of industrial wood pellets, a renewable and sustainable energy source produced by aggregating a natural resource, wood fiber, and processing it into a transportable form. The Zacks Consensus Estimate for EVA's 2023 bottom line has moved south from earnings of 59 cents per share to a loss of 6 cents per share over the past 30 days. Enviva missed earnings estimates in all the last four quarters, with the average negative surprise being 294.32%. The company carries a Zacks Rank #4 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.
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/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Zacks.com featured highlights include AngioDynamics, Definitive Healthcare, Casella Waste Systems and Enviva
For Immediate Release
Chicago, IL – April 17, 2023 – Stocks in this week’s article are AngioDynamics Inc. (ANGO - Free Report) , Definitive Healthcare Corp. (DH - Free Report) , Casella Waste Systems, Inc. (CWST - Free Report) and Enviva Inc. (EVA - Free Report) .
4 Toxic Stocks Detrimental to Your Portfolio's Health
Investors need to be mindful of the performance of each stock present in their portfolios to maximize profit while keeping the associated risk at bay. Predominantly, toxic stocks are the biggest contributors of risks in any portfolio. Now, the question is, what are toxic stocks and how to identify them?
Companies usually take debts to expand their business and eventually reward their shareholder through dividends. But there are some companies that have high debts on their balance sheet and are unable to translate those high debts into profits. The struggle to generate revenues is apparent in the financial statements and is a telltale sign of toxic stocks.
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. This is because 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.
In some instances, investors may fail to identify toxic stocks despite meticulously studying financial statements because of misleading information. In such cases, diversification can prove to be a savior. Accumulating stocks from different sectors with low correlation is a key to diversification. A well-diversified portfolio is least likely to suffer from the adverse outcome of a toxic stock present in the portfolio.
If investors can successfully identify a toxic stock in their portfolio, they can short-sell it and buy it again at a lower price to generate profits.
AngioDynamics Inc., Definitive Healthcare Corp., Casella Waste Systems, Inc. and Enviva Inc. are a few toxic stocks that you should dump from your portfolio.
Here are four of the 29 toxic stocks that showed up on the screen:
AngioDynamics designs, manufactures and sells a wide range of medical, surgical and diagnostic devices. The company's devices are generally used in minimally invasive, image-guided procedures. The Zacks Consensus Estimate for ANGO's 2023 bottom line is pegged at a loss of 4 cents per share. The consensus mark has moved south from earnings of 1 cent per share to a loss of 4 cents per share over the past 30 days. AngioDynamics missed earnings estimates in two out of the last four quarters, matched once and beat on the other, with the average negative surprise being 50%. The company 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 bottom line is pegged at a profit of 22 cents per share, implying a year-over-year deterioration of 4.35%. The consensus mark has moved south from earnings of 23 cents per share over the past 60 days. Definitive Healthcare beat earnings estimates in all four trailing quarters, with the average surprise being 35%. The company carries a Zacks Rank #4 (Sell) and has a VGM Score of F.
Casella Waste is a regional, integrated solid waste services company that provides collection, transfer, disposal and recycling services, generates steam and manufactures finished products utilizing recyclable materials primarily throughout the eastern portion of the United States and parts of Canada. The Zacks Consensus Estimate for the firm's 2023 earnings has moved south from $1.31 per share to earnings of $1.21 per share over the past 60 days. The company carries a Zacks Rank #4 and has a VGM Score of C.
Enviva is a producer of industrial wood pellets, a renewable and sustainable energy source produced by aggregating a natural resource, wood fiber, and processing it into a transportable form. The Zacks Consensus Estimate for EVA's 2023 bottom line has moved south from earnings of 59 cents per share to a loss of 6 cents per share over the past 30 days. Enviva missed earnings estimates in all the last four quarters, with the average negative surprise being 294.32%. The company carries a Zacks Rank #4 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/2078832/4-toxic-stocks-that-are-detrimental-to-your-portfolios-health
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 >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
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/performancefor information about the performance numbers displayed in this press release.