40 Stocks On a Slippery Slope

If you’ve been keeping up with this daily blog, you know that earnings season is well under way, and we’ve already had our fair share of winners and losers. Just today, shares of Gilead Sciences (GILD) were in freefall after the biotech company shocked investors with its weak 2017 forecast. Meanwhile, this season’s winners include Apple Inc. (AAPL), General Dynamics (GD), Hasbro (HAS) and Southwest Airlines (LUV).

While earning season should present a good buying opportunity for savvy stock pickers, this also means that it’s time to watch out for what I like to call "slippery slope" stocks. More on that in a moment.

The best way to prepare for hedge against volatility is by realigning your portfolio for maximum performance. If you want to avoid many of the headaches that come with an uncertain market, start by trimming the dead weight in your portfolio. Ensure smooth and steady returns by sticking with more conservative stocks.

And you can do this by checking your stocks in Portfolio Grader. When you run your holdings through this screening tool, take note of each stock’s Quantitative Grade (the current level of institutional buying pressure) and each stock’s Fundamental Grade (a weighted blend of eight financial metrics). Also check which of your stocks are rated as Conservative, Moderately Aggressive or Aggressive. Shoot to have 60% of your holdings in Conservative stocks, 30% in Moderately Aggressive and 10% in Aggressive.

I can’t stress this last point enough because aggressive stocks are the first one to take a beating in a correction, so you’ll want to limit your exposure to these "spicier" stocks. To get you started, here are 40 moderately aggressive and aggressive-rated stocks you’ll want to steer clear of in the coming months.

40 Slippery Slope Stocks
Symbol Company Name Quantitative
ACHC Acadia Healthcare Company Inc. F D F
BCS Barclays PLC D C D
BMRN BioMarin Pharmaceutical Inc. D C D
CAVM Cavium Inc. D C D
CF CF Industries Holdings Inc. D F D
CREE Cree Inc. F C F
CS Credit Suisse Group AG F C D
DB Deutsche Bank AG D C D
DFBG Differential Brands Group Inc. F D F
ERIC LM Ericsson Telefon AB F D F
ERJ Embraer S.A. D C D
ESV Ensco plc D D D
FLO Flowers Foods Inc. D C D
GPS Gap Inc. F C D
HFC HollyFrontier Corporation F D F
HTZ Hertz Global Holdings Inc. F F F
IDTI Integrated Device Technology Inc. D C D
JCP J. C. Penney Company Inc. F D D
JLL Jones Lang LaSalle Incorporated F C F
JWN Nordstrom Inc. F C D
KSS Kohl’s Corporation F C D
LM Legg Mason Inc. F C D
LYG Lloyds Banking Group plc F D D
OSIR Osiris Therapeutics Inc. F C D
PAY VeriFone Systems Inc. F D F
RBS Royal Bank of Scotland Group plc F C D
RHI Robert Half International Inc. D C D
SC Santander Consumer USA Holdings Inc. D C D
SCOR comScore Inc. D C D
SIG Signet Jewelers Limited F C D
SPLS Staples Inc. F D D
TI.A Telecom Italia S.p.A. D C D
TWTR Twitter Inc. D C D
VIPS Vipshop Holdings Ltd F C D
VOYA Voya Financial Inc. D D D
VRX Valeant Pharmaceuticals International Inc. F F F
W Wayfair Inc. D C D
WFT Weatherford International plc F C D


Louis Navellier

Louis Navellier

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