The POWR Ratings have been calculated, pinpointing a handful of stocks that have been downgraded to “Strong Sell” ratings. The POWR Ratings are calculated daily to provide insight into the stocks that are worthy and unworthy of your attention.
Check out the latest POWR Rating downgrades and you will find stocks across a wide array of industries have been downgraded.
Let’s take a look at four of the latest downgrades: Park Hotels & Resorts (PK), AMC Networks (AMCX), Applied Therapeutics (APLT), and Gritstone Oncology (GRTS).
Park Hotels & Resorts (PK)
The downgrade of PK to Strong Sell is symbolic of the hospitality industry’s struggles. PK operates luxury resorts and hotels throughout the United States and beyond. PK lodging is simply not in demand due to the pandemic. However, if the economy picks back up as a result of an effective vaccine, PK could pop right back to life.
PK has “F” grades in the Buy & Hold Grade and Trade Grade components of the POWR Ratings. PK has a year-to-date price return of -59%. Of the eight analysts who have studied PK, six recommend Holding, two advise Selling and only two recommend the stock as a Buy.
Stay far away from PK until an effective vaccine is developed. Even if such a vaccine becomes available, it will take upwards of a year or longer to provide the public with a double dose of it, ensuring people can travel, work and socialize without worrying about contracting the coronavirus. This means PK will likely continue to decline or stagnate in the months ahead.
AMC Networks (AMCX)
Cord cutting is en vogue, meaning the likes of AMCX are struggling. AMCX owns and operates cable television brands such as IFC Films, IFC Sundance Channel, and WE TV.
The POWR Ratings reveal AMCX has “F” grades in the Buy & Hold Grade and Trade Grade categories. AMCX is ranked in the bottom half of Entertainment – Media Producers stocks. AMCX had a -28% price return in ’19. The stock’s year-to-date price return is -40%.
AMCX will likely continue to decline until the economy recovers and consumers have the confidence to continue paying for cable rather than pivoting to less expensive streaming services. There is no reason to add AMCX to your portfolio at this time.
Applied Therapeutics (APLT)
This biopharma company develops drug candidates for the treatment of diabetes, retinopathy, and galactosemia. APLT has “F” grades in the Buy & Hold Grade and Trade Grade components of the POWR Ratings. The stock is ranked in the bottom half of 240 in the Medical – Pharmaceuticals space.
APLT has a year-to-date price return of -21%. The stock has a six-month price return of -42%. There is no reason to buy APLT unless its AT-007 candidate obtains approval at some point in 2021.
The bottom line is the risk of regulatory and clinical problems APLT might face down the line make this stock unworthy of your hard-earned money.
Gritstone Oncology (GRTS)
GRTS develops immunotherapies for cancer. The stock has “F” grades in the Trade Grade and Buy & Hold Grade components. Furthermore, GRTS is ranked 256 out of 384 stocks in the Biotech space.
GRTS had a price return of -41% in 2019. The stock has a -68% price return year-to-date. GRTS recently sold shares at a price lower than its market price. Add in the company’s dilution of the value of existing shares and investors have all the more reason to depart for greener pastures.
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AMCX shares fell $23.91 (-100.00%) in premarket trading Friday. Year-to-date, AMCX has declined -39.37%, versus a 9.05% 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. More...
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