3 Downgraded Stocks to Avoid

: BTBT | Bit Digital Inc. News, Ratings, and Charts

BTBT – The S&P 500 has pulled back more than 4% from last week’s highs. The most vulnerable sector has been the high-growth stocks especially as interest rates are rising. Patrick Ryan identifies 3 stocks that investors should avoid.

The latest POWR Ratings are in. A good number of stocks were upgraded and downgraded, indicating the market’s state as it encounters some selling pressure as it pulls back from last week’s highs.

If you own any of the stocks recently downgraded in the POWR Ratings, now is the time to consider selling. After all, there is money to be made by predicting both the rise and fall of publicly traded companies.

Sort through the latest POWR Ratings downgrades for yourself and you will find they are spread out across a wide variety of industries. Let’s take a look at three of the latest downgrades: Bit Digital (BTBT), The Howard Hughes Corporation (HHC), and Torchlight Energy Resources (TRCH).

Bit Digital (BTBT)

BTBT is a bitcoin mining business. Though bitcoin and other cryptocurrencies have been on a tear of late, it certainly does not help that Tesla (TSLA) founder Elon Musk recently commented the price of bitcoin is high. When Musk speaks, investors listen.

BTBT has an F grade in the Quality component of the POWR Ratings. The stock also has D grades in the Sentiment, Value, and Stability components. If you would like to learn how BTBT fares in the Momentum and Growth components, click here. Of the 105 publicly traded companies in the Financial Services (Enterprise) category, BTBT is ranked 102. You can learn more about the stocks in the Financial Services (Enterprise) industry by clicking here.

The excessive fluctuations of bitcoin’s price and those of other cryptocurrencies make BTBT a risky play. In fact, one research firm insists BTBT is a complete fraud. After all, BTBT was a car rental business before it pivoted to the crypto realm. An investment in BTBT is simply not worth the risk.

The Howard Hughes Corporation (HHC)

HHC is a real estate business that develops residential communities as well as another real estate throughout much of the United States. HHC business is split between strategic development and master-planned communities. The master-planned communities business is centered on the development and sale of both residential land and commercial land. The strategic development wing is comprised of real estate properties and development projects. HHC had a ’20 price return of -37.75% and has a three-year price return of -17.95%.

HHC has F grades in the Quality and Growth components of the POWR Ratings. The stock has D grades in the Momentum and Value components. If you would like to learn more about how HHC fares in terms of the Sentiment and Stability components of the POWR Ratings, click here. Of the 24 publicly traded companies in the Homebuilders segment, HHC is ranked dead last. You can learn more about the Homebuilders space by clicking here.

HHC has an absurdly high forward P/E ratio of 904.64, indicating the stock is overpriced. The stock is trading within $28 of its 52-week high of $126.60 yet its 52-week low is $35.10. The analysts have established an average price target of $91.67 for HHC, indicating it is overpriced by more than 6%.

Torchlight Energy Resources (TRCH)

TRCH acquires, explores, and develops natural gas and oil in the United States. The company’s interests are primarily in two main oil and gas projects dubbed Coulter Field and Marcelina Creek Field Development. Though oil and gas prices are moving back to the price points of years past, it is no secret that these are dying industries gradually being phased out in favor of clean energy. TRCH, headquartered in Houston, certainly won’t receive more investing dollars following the lone star state’s energy debacle in February.

TRCH has F grades in the Quality, Stability, and Value components of the POWR Ratings. If you would like to learn more about how TRCH fares in terms of the Momentum, Sentiment, and Growth components, you can do so by clicking here. Furthermore, out of the 99 publicly traded companies in the Energy – Oil & Gas space, TRCH is ranked 93rd. Investors who would like to find out more about the stocks in the Energy – Oil & Gas sector can do so by clicking here.

TRCH had a -7.92% price return in ’20. It certainly isn’t a positive sign that investors are taking profit off the table in the days immediately following TRCH price increases. This stock is simply too much of a roller coaster for most investors to consider riding.

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BTBT shares were trading at $15.50 per share on Tuesday morning, down $3.21 (-17.16%). Year-to-date, BTBT has declined -29.26%, versus a 2.78% 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...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
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TRCHGet RatingGet RatingGet Rating
HHCGet RatingGet RatingGet Rating

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