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Zacks.com featured highlights include: Kimbell Royalty Partners, Switch, Sina and The Trade Desk

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For Immediate Release

Chicago, IL – March 19, 2020 – Stocks in this week’s article are Kimbell Royalty Partners (KRP - Free Report) , Switch, Inc. (SWCH - Free Report) , Sina Corp. (SINA - Free Report) and The Trade Desk Inc. (TTD - Free Report) .

4 Toxic Stocks to Dump or Play Short to Reap Profits

Accuracy in distinguishing overpriced stocks from the fairly priced ones leads to profitable investing. In a complicated market place, the overpriced stocks and the correctly priced ones are intermixed in such a way that differentiating between the two is a tough task. Figuring out bloated toxic stocks on a consistent basis and discarding them at the right time is the key to successful investing.

Usually, toxic companies are characterized by a high debt burden and are vulnerable to external shocks. The hype associated with the irrationally high-priced toxic stocks is usually short-lived as their intrinsic value falls short of their current price. Elevated price levels of these stocks can be due to either an irrational exuberance associated with them or some serious fundamental lacunae. If you own such overhyped stocks for a long period of time, you are bound to see huge loss 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 picking stocks with huge growth potential, figuring out toxic stocks and abandoning them at the right time is the key to shield your portfolio from big losses. You can 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/820680/4-toxic-stocks-to-dump-or-play-short-to-reap-profits

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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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

 

 

 

                                                                                     


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Sina Corporation (SINA) - free report >>

The Trade Desk Inc. (TTD) - free report >>

KIMBELL ROYALTY (KRP) - free report >>

Switch, Inc. (SWCH) - free report >>