The stock market is rocking and rolling, the first-quarter earnings season has been phenomenal (the second-quarter earnings season is expected to be even better!) and the economy is beginning to fire on all cylinders again. If you’re considering investing in the stock market, now is a great time to do it. The reality is strong earnings should continue to drive the stock market higher.
However, you don’t want to invest in just any stock.
While there are plenty of stocks that are screaming buys right now, I found 10 well-known companies that I wouldn’t touch with a ten-foot pole. Not only are you likely to recognize these names, but you might have shopped at or bought products from the following 10 companies. Let’s take a look…
Costco Wholesale Corporation’s (COST) rating took a dive in March, and currently holds a D-rating for its Total Grade. Both its Fundamental Grade and Quantitative Grade are poor, too, earning D-ratings as well.
Cisco Systems, Inc. (CSCO) has bounced around between a D-rating and C-rating these past few months, and currently has a D-rating for its Total Grade. Its Fundamental Grade is a little better, standing at a C-rating. However, CSCO’s Quantitative Grade is also D-rated.
GlaxoSmithKline PLC (GSK) is considered a “Strong Sell” with its measly F-rating for its Total Grade. It earns a D-rating for its Fundamental Grade and an F-rating for its Quantitative Grade. Clearly, buying pressure has all but dried up in this stock.
International Business Machines Corporation (IBM) has been a “Sell” since last July, and briefly fell to an F-rating in January and February. Currently, IBM holds a D-rating for its Total Grade, D-rating for its Quantitative Grade and C-rating for its Fundamental Grade.
Kellogg Company (K) has been stuck at a D-rating for the past month, keeping it at a steady “Sell.” It earns a C-rating for its Fundamental Grade and a D-rating for its Quantitative Grade.
Coca-Cola Company’s (KO) rating has fluctuated between a “D” and an “F” over the past few months. Most recently, it holds a C-rating for its Fundamental Grade and D-rating for its Quantitative Grade. Currently, it has a D-rating for its Total grade.
Reynolds Consumer Products, Inc. (REYN) holds a D-rating for its Total Grade and C-rating for its Fundamental Grade. It earns an F-rating for its Quantitative Grade, so the stock is seeing very little buying pressure.
Visa, Inc.’s (V) report card is very similar to Reynolds Consumer Products’: It has a C-rating for its Fundamental Grade, F-rating for its Quantitative Grade and D-rating for its Total Grade.
Verizon Communications, Inc. (VZ), which has a D-rating for its Total Grade, also has a C-rating for its Fundamental Grade and F-rating for its Quantitative Grade.
This wraps up my list of 10 stocks to sell! This list is based on based on my Portfolio Grader, which uses my proprietary, quant-based system to scour through nearly 5,000 stocks. It gives every stock a grade from “A” (Strong Buy) to “F” (Strong Sell). It’s an excellent investing tool to keep in your back pocket when you’re building your portfolio. Now, for this portfolio, the Total Grade is a lowly “D.” So, if you own any of these stocks, you may want to consider selling them now. The truth of the matter is there are more fundamentally superior stocks available, and these 10 stocks simply don’t make the grade.
I look forward to seeing you at the Accelerated Wealth Summit next Wednesday, May 19, at 4 p.m. ET. We’ll have an in-depth discussion about my quant-based system, and I’ll reveal an exciting new buy that is a great play on the burgeoning microLED trend.
The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Cisco Systems, Inc. (CSCO), Costco Wholesale Corporation (COST) and Visa, Inc. (V)