We’re fast approaching what I like to call the "dog days of summer." Traders are going on vacation, and the thin market conditions mean that we may have some bumpy days ahead of us. That means right now remains an ideal time to continue trimming the dead weight in your portfolio. In today’s blog, I’ll reveal to you 25 aggressive stocks currently on a slippery slope.
Now, all 25 of these stocks currently have either a D- or an F-rating in my Portfolio Grader system. For that reason, I cannot recommend any of these companies as worthwhile investments for any investor to own right now.
Sell These Slippery Slope Stocks Now
| Symbol | Company Name | Quantitative Grade |
Fundamental Grade |
Total Grade |
|---|---|---|---|---|
| AAOI | Applied Optoelectronics, Inc. | D | D | D |
| ADRO | Aduro BioTech, Inc. | D | B | D |
| AGEN | Agenus Inc. | F | C | D |
| BNED | Barnes & Noble Education, Inc. | D | C | D |
| CLVS | Clovis Oncology, Inc. | F | C | F |
| CRHM | CRH Medical Corporation | D | B | D |
| DERM | Dermira Inc | F | D | F |
| EGC | Energy XXI Gulf Coast, Inc. | D | C | D |
| EPE | EP Energy Corp. | D | C | D |
| GNMK | GenMark Diagnostics, Inc. | F | C | D |
| INSY | Insys Therapeutics, Inc. | F | D | F |
| JNCE | Jounce Therapeutics, Inc. | D | D | D |
| KODK | Eastman Kodak Company | D | C | D |
| MLNT | Melinta Therapeutics, Inc. | F | C | D |
| NK | NantKwest, Inc. | F | D | F |
| ORIG | Ocean Rig UDW Inc | F | B | D |
| OVID | Ovid Therapeutics Inc. | D | C | D |
| PI | Impinj, Inc. | F | D | D |
| PRTA | Prothena Corp. Plc | F | C | F |
| SFS | Smart & Final Stores, Inc. | F | C | D |
| SYRS | Syros Pharmaceuticals, Inc. | F | D | F |
| TEVA | Teva Pharmaceutical Industries | D | C | D |
| UPL | Ultra Petroleum Corp. | F | D | F |
| WFT | Weatherford International plc | D | C | D |
| WIN | Windstream Holdings, Inc. | F | B | D |
How do I know these stocks are dangerous investments right now? Simple. I checked all of them in my Portfolio Grader tool.
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 will be the first ones to take a beating during a correction. That’s why you want to limit your exposure to these “spicier” stocks.
To wrap up today, the best thing you can do to prepare (and to weather the current trading activity) is invest solely in companies with the best earnings prospects. Of course, the best place to start is to run your portfolio through my Portfolio Grader screening tool.
Until next time,
Louis Navellier