Don’t Get Caught With These Stocks This Week According To Forcerank

Each week Forcerank runs a variety of games covering different industries. What we have found, is that the lowest ranked companies in their respective games deliver the biggest negative price movement  for that week. This week the losers include popular names like Shake Shack and Ctrip and some lesser known ones such as SkyWest Airlines and Trimble Navigation.

Shake Shack (SHAK) | Most Heavily Shorted: The new face of fast casual hasn’t exactly been tasty for investors. Shares have trended down since peaking in may 2015 as the company faces criticism about decelerating growth. Its most recent earnings report prolonged the sell-off after same shack sales came fell below expectations. The stock still trades well above its peers at 75 times earnings and by any estimation is considered overvalued. Many key technical indicators support a further decline. The moving average convergence divergence (MACD) indicator turned negative in mid August, suggesting downside momentum is increasing.

Intuit (INTU) | Enterprise Software: Intuit shares have slid nearly 10% in the past month after the company guided weak first quarter earnings. Since then, technicals have insisted that the stock is heading for further pain. Its short term 50 day average just crossed over its even shorter term 20 day moving average. Additionally the MACD indicator recently had a bearish crossover and turned negative. This is often indicative of greater downward momentum.

Blackstone (BX) | Investment Banks: Blackstone was the lowest ranked company in our inaugural investment banking game. Shares are down about 1.5% in early Monday morning trading and nearly 8% in the past 30 days. Its 200 day moving average is still well above the 50 day average as shares trend lower. Additionally, like its peers on this list, the MACD technical just had a bearish crossover and recently turned negative. Fortunately, Credit Suisse just reaffirmed its buy rating which could mean a reversal of fortune is looming.

Some of the other expected losers this week include:

Trimble Navigation (TRMB) | Hardware

AMC Networks (AMCX) | Media

SkyWest (SKYW) | Airlines

VF Corporation (VFC) | Apparel

Alexion Pharmaceuticals (ALXN) | Biotech

Ctrip.com (CTRP) | E-Commerce

Yandex (YNDX) | Social Media

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Photo Credit: Phil Guest

Disclosure: Each week, Forcerank runs a variety of games covering different industries. What we have found, is that the highest ranked companies in their ...

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