We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks.com featured highlights include: Myriad Genetics, Cinemark, Vericel and IDEXX Laboratories
Read MoreHide Full Article
For Immediate Release
Chicago, IL – May 27, 2020 – Stocks in this week’s article are Myriad Genetics, Inc. (MYGN - Free Report) , Cinemark Holdings Inc. (CNK - Free Report) , Vericel Corp. (VCEL - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) .
Dump These 4 Toxic Stocks or Sell Short for Timely Profits
Investors who can precisely identify overpriced stocks are likely to emerge winners. In practice, the correctly priced stocks and the overblown toxic stocks are mingled in the market place in such a way that it becomes tough to identify them. Investors who can figure out the overpriced stocks and shun them at the right time are the ones who are likely to benefit.
Generally, toxic stocks are vulnerable to external shocks and burdened with huge debts. In fact, the unreasonably high price of the toxic stocks is short lived as the current price of these stocks is higher than their intrinsic price. So, quite obviously, if you own such toxic stocks for a very long period of time, you are sure to see huge loss in your wealth.
High price of the toxic stocks can be ascribed to an irrational exuberance associated with them or some serious fundamental lacunae. Presence of such stocks in your portfolio may result in the loss of wealth.
However, if you can precisely spot the toxic stocks, you may gain by resorting to an investing strategy called short selling. This strategy allows you to sell a stock first and then buy it when the price falls.
While short selling excels in bear markets, it typically loses money in bull markets.
So, just like owning stocks with growth potential, identifying toxic stocks and discarding them at the right time is the key to guard your portfolio from big losses or make profits by short selling them.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks.com featured highlights include: Myriad Genetics, Cinemark, Vericel and IDEXX Laboratories
For Immediate Release
Chicago, IL – May 27, 2020 – Stocks in this week’s article are Myriad Genetics, Inc. (MYGN - Free Report) , Cinemark Holdings Inc. (CNK - Free Report) , Vericel Corp. (VCEL - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) .
Dump These 4 Toxic Stocks or Sell Short for Timely Profits
Investors who can precisely identify overpriced stocks are likely to emerge winners. In practice, the correctly priced stocks and the overblown toxic stocks are mingled in the market place in such a way that it becomes tough to identify them. Investors who can figure out the overpriced stocks and shun them at the right time are the ones who are likely to benefit.
Generally, toxic stocks are vulnerable to external shocks and burdened with huge debts. In fact, the unreasonably high price of the toxic stocks is short lived as the current price of these stocks is higher than their intrinsic price. So, quite obviously, if you own such toxic stocks for a very long period of time, you are sure to see huge loss in your wealth.
High price of the toxic stocks can be ascribed to an irrational exuberance associated with them or some serious fundamental lacunae. Presence of such stocks in your portfolio may result in the loss of wealth.
However, if you can precisely spot the toxic stocks, you may gain by resorting to an investing strategy called short selling. This strategy allows you to sell a stock first and then buy it when the price falls.
While short selling excels in bear markets, it typically loses money in bull markets.
So, just like owning stocks with growth potential, identifying toxic stocks and discarding them at the right time is the key to guard your portfolio from big losses or make profits by short selling them.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/944909/dump-these-4-toxic-stocks-or-sell-short-for-timely-profits
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: www.Zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.