Avoid These 3 Downgraded Stocks in June If you're looking for a second opinion on your stocks, look no further than our proprietary POWR Ratings. Our ratings evaluate stock based on 118 diff...
By Patrick Ryan •
This story originally appeared on StockNews
The latest POWR Ratings upgrades and downgrades are here. A few stocks have been downgraded all the way to Strong Sells. We recommend that investors avoid these stocks as they are likely to underperform in the weeks and months ahead.
Investors who hold stocks that were downgraded to Sell or Strong Sell should consider selling their positions and moving into stocks that have a Buy or Strong Buy rating. In this article, though, I will focus on three stocks you should stay clear of.
Three of the more intriguing POWR Ratings downgrades include SunPower Corporation (SPWR), Kaleido Biosciences (KLDO), and Ocugen (OCGN).
SunPower Corporation (SPWR)
Based in San Jose, California, SPWR has been in business for nearly 40 years. The company designs, makes, and markets solar power tech products, including full systems. SPWR also generates revenue through solar power-related services.
SPWR has an overall grade of F, which translates into a Strong Sell rating in the POWR Ratings system. The company has a grade of F in the Sentiment and Stability components and grades of D in the Momentum and Growth components. You can find out how SPWR fares in the Quality and Value components by clicking here.
Out of the 21 stocks in the Solar industry, SPWR is ranked 14th. You can find the top stocks in this industry by clicking here. Analysts are not exactly uber-bullish about SPWR, with nine out of the 11 rating the stock as a Hold. SPWR also appears to be overpriced as its forward P/E ratio is 64.11. The stock is also quite volatile, with a beta over two.
Kaleido Biosciences (KLDO)
KLDO is a clinical-stage healthcare business. This company leverages the potential of microbiomes to treat diseases and enhance human health. KLDO currently trades at $6.84. The stock's 52-week high is $20.50, and its 52-week low is $6.61.
KLDO is a POWR Ratings dud as it has an overall grade of F, which is a Strong Sell rating in the POWR Ratings system. It has a grade of D in the Quality, Sentiment, Momentum, and Value components. Click here to find out how KLDO fares in the Stability and Growth components.
Of the 487 stocks in the Biotech industry, KLDO is ranked 458th. For the top stocks in this industry, click here. KLDO's price returns are primarily in the red as well. For instance, the stock is down 25% so far for the year.
Click here to checkout our Healthcare Sector Report for 2021
Ocugen (OCGN)
OCGN is a clinical-stage biopharma business. OCGN's specialty is developing the therapies necessary to treat rare eye diseases and those that are underserved. Based in Malvern, Pennsylvania, OCGN brainstorms these therapies and brings them to market. Each of OCGN's products are in the clinical stage.
OCGN is likely underpriced at $6.13 per share. The stock has an egregiously low forward P/E ratio of 6.05. OCGN has a 52-week high of $18.77 and a 52-week low of a pitiful 19 cents. Investors should also be aware that the stock has a sky-high beta of 4.47.
OCGN has an overall grade of F, translating into a Strong Sell rating in the POWR Ratings system. In addition, the company has grades of F in the Quality, Sentiment, and Stability components. The stock also has a grade of D in the Momentum and Value components. Investors who would like to find out how OCGN fares in the Growth component can do so by clicking here.
Out of the nearly 500 stocks in the Biotech industry, OCGN is ranked 468th. The stock's price returns are mainly in red. OCGN is already down 29% for the month and down 96% over the past three years.
SPWR shares were trading at $25.06 per share on Tuesday morning, down $0.98 (-3.76%). Year-to-date, SPWR has declined -2.26%, versus a 13.99% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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