Don’t Let These 5 Stocks Destroy Your Portfolio

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 and vice versa for those in the top position. This week we look at a list of companies that are consistently at the bottom or trending lower in their respective games. To receive the rest of the rankings, simply visit the Forcerank Blog or sign up for next week’s contests and we will send you the consensus data Monday morning.

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Photo Credit: Paintimpact

Twitter (TWTR) | Social Media: It’s been all downhill for Twitter after the slew of takeover rumors fell through at the end of the summer. In the months following  the social media company reported dismal third quarter results and watched its prized COO, Adam Bain, step away from his position at the company. Meanwhile, SnapChat’s intention to go public early next year should push Twitter further down the hierarchy of social media stocks. From a technical perspective, its recent pricing action sets up for a continued downturn. The MACD remains in negative territory and is on the verge of a bearish crossover, which is a precursor to weak price movement. Twitter may see some support from its recent deal with Disney that will stream Star Wars content live on the social media network.

GoPro (GPRO) | Hardware: GoPro is hurting since releasing its abysmal third quarter results that missed by 26 cents on the bottom line and $60 million on the top. More importantly, though, the action camera company cut guidance heading into the pivotal weeks of the holiday season. Shares dropped over 25% in the moments following the print and have yet to reconcile those losses. Since then, GoPro has seen a technical breakdown with on balance volume and MACD turning negative along with a bearish crossover of its 200 days moving average. GoPro’s newest products the Hero 5 and Karma drone are clearly not expected to meet the company’s initial goals when it debuted at the beginning of September. A series of downgrades along with deteriorating fundamentals and technical support a continued channel down.

Groupon (GRPN) | Ecommerce: Groupon had been trending higher for the better part of 2016 but that came to a screeching halt following its third quarter result. Between that time Groupon agreed to purchase rival online marketplace, LivingSocial, for an undisclosed amount. The move will help bolster its presence in local markets but can’t close the gap on Amazon’s retail dominance. The combination of weak fundamentals and a breakdown in technicals bodes poorly for future price movement. In mid-November the 200-day moving average crossed its 20-day average and is slowly closing in on the 50 days. Meanwhile, the MACD remains in negative territory, meaning the downtrend is getting stronger.

Darden Restaurants (DRI) | Restaurants: In the past month shares of Darden Restaurants have climbed 17% despite exhibiting underlying fundamental flaws. Conventional wisdom suggests the stock can’t continue to surge at this pace and must retrace its gains before breaking out again. That’s the approach Forcerank users took this week when they ranked the casual dining group at the bottom of the restaurant's contest. A quick glance at its chart and its clear that that stock is overbought. Price action has consistently touched the upper Bollinger Band while a relative strength index over 65 should raise eyebrows. The stock was also downgraded in the past week by Credit Suisse and Maxim Group on concerns over the stock’s valuation.  

Skyworks Solutions (SWKS ) | Semiconductors: Shares of the chipmaker have soared in recent months following the early success of the new iPhone 7. Now that consumers and the market are less enamored with the phone it’s time for Skyworks to return its gains. A bearish crossover of the 20-day average along with the MACD inching closer to negative territory and its own bearish cross intimates a downturn on the horizon. Forcerank users consistently rank Skyworks in the middle of the semiconductors contest despite some glaring weaknesses in its charts.

Disclosure: This article was originally published in Forcerank on November 30, 2016. To learn more visit the  more

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Chee Hin Teh 7 years ago Member's comment

Thanks sir for sharing