These 5 Stocks Are Giving A Strong Sell Signal

Photo Credit: Andri Koolme

The lowest ranked companies 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 of their respective games. They include McDonald’s, Analog Devices, Tableau, Fitbit and Wells Fargo.

McDonald’s (MCD) | Restaurants: Its undeniable that McDonald’s has been surging since Steve Easterbrook assumed the position of CEO in mid 2015. But now the Golden Arches appears to be hitting its first roadblock. Shares have trended down since a bearish crossover in the MACD at the end of September. The company is now the worst ranked stock in the restaurant contest with an average user rank of 6.27. McDonald’s continues to face stiff competition from alternative fast food chains and healthy alternatives. Investors are hoping a strong earnings report in a few weeks can turn things around but early expectations would suggest otherwise.

Analog Devices (ADI) | Semiconductor: The second week of the semiconductor contest featured a huge shakeup from top to bottom, but one thing remained consistent: Analog Devices was the worst ranked company. This pessimism towards the stock is contrary to how it has been trending lately. Shares are up 10% year to date and about 2% in the past 30 days. In the past 3 months the stock has received an equal amount of upgrades and downgrades from firms like Goldman and Bank of America. Its widely believed that the semiconductor space is overbought with a broader pullback on the horizon. Analog will just be one of the many victims, based on its charts,  when this occurs even if doesn’t appear to be right now.

Tableau (DATA) | Small/Mid Enterprise Software: Tableau is consistently one of the worst ranked stocks and it only appears to be getting worse. Average user rankings fell from 6.2 last week to 7.67, signaling more troubles on the horizon. The company has been unable to right the ship since its abysmal Q4 2015 that cut the stock in half. Shares are down 48% year to date and appear to be trending lower. A bearish crossover in the MACD that’s already in negative territory along with sluggish volume are typically concerning for investors. Meanwhile the company has received a number of downgrades over the past few months citing issues with slowing revenue growth.

Fitbit (FIT) | Hardware: Fitbit has been a difficult company to pin down in recent months. Its early woes following its 2015 IPO have diminished slightly, but that doesn’t mean they aren’t prone to near term headwinds. The wearable company was downgraded by the Forcerank consensus after a lackluster start to October. Shares dropped 5% last week and were downgraded to Underweight by Pacific Crest the week prior. Many widely followed technical have all trended down in the past few weeks and its volume profile suggests the stock should drop further.

Wells Fargo (WFC) | Financials: Wells Fargo’s situation is only about to get worse after its third quarter report this Friday. The company was recently caught in a multi-year scandal in which they were creating millions of fake accounts without customer authorization. Wells Fargo agreed with regulators to a miniscule $185 million fine but most of the damage has been to it’s reputation. Wells Fargo was a trusted bank best known for handling mortgages and loans across its vast customer base. Clearly its trustworthiness has quickly disappeared and soon will its customers. Congress is calling for John Stumpf to step down as CEO and Chairman while some states are halting business with Wells Fargo. The stock has been downgraded multiple times in the past few weeks and expectations are that earnings will start to edge down as well. Shares are down 16% year to date and should fall even following its earnings report.

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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