Now that some stock market gurus, such as Kevin O’Leary, warn of a potentially significant market decline, it is time to reassess your positions and make sure you’re not buying bad stocks. There is a good argument to be made that the market is overvalued, mainly due to government stimulus dollars that turned out to be less necessary than initially assumed.

The best way to avoid bad stocks is through our proprietary POWR Ratings systems, which evaluate stocks based on 118 different factors. Stocks rated a Sell or Strong Sell should definitely be avoided.  

Here are three of the latest POWR Ratings downgrades: Cinedigm (CIDM - Get Rating), MongoDB (MDB - Get Rating), and Phreesia (PHR - Get Rating) and why you should avoid them.

Cinedigm (CIDM - Get Rating)

CIDM is a digital cinema service, content marketing, and software business. CIDM’s digital cinema platform provides software services, tech solutions, financial guidance, and additional support to those who own and distribute video content.

Unfortunately, the movie industry has fallen off a cliff since the pandemic started. Though there is the potential for a rebound, it will take some time. 

CIDM has an overall grade of F, which is a Strong Sell rating in our POWR Ratings system. The company has grades of F in the Value and Stability components. 

The stock has Ds in the Quality and Growth components. Click here to learn more about how CIDM fares in the Momentum and Sentiment components. CIDM is ranked fifth out of eight stocks in the F-rated Entertainment – Movies/Studios industry. You can find the top stocks in this industry by clicking here. CIDM is down 25% over the past month. 

MongoDB (MDB - Get Rating)

MDB generates revenue through its database platform. MDB products are tailored to businesses in the financial services, media, government, healthcare, and telecom industries. Headquartered in New York, NY, MDB has a beta of 0.75. This figure indicates that MDB is less volatile than the market. 

The company has an overall grade of F, which translates into a Strong Sell rating in our POWR Ratings system. MDB has D grades in the Value, Stability, and Growth components. You can find out how MDB fares in the Momentum, Quality, and Sentiment components by clicking here. 

MDB is ranked 117 out of 131 stocks in the D-rated Software – Application industry. You can find top stocks in this industry clicking here. Analysts do not believe MDB will move significantly higher. 

Click here to check out our Software Industry Report for 2021

Phreesia (PHR - Get Rating)

PHR offers a patient intake platform that helps care providers manage patients and the flow of business. This SaaS platform maximizes patient engagement in the care process while also helping healthcare businesses make the most of their staff, add to the bottom line and provide the best possible clinical care.

PHR is currently trading at $65 and change. The stock’s 52-week low is $26.52, while its high is $81.59. PHR has an overall grade of F, translating into a Strong Sell rating in our POWR Ratings system. The stock has Ds in the Value, Growth, Sentiment, and Quality components. 

Click here to find out how PHR fares in the Momentum and Stability components. Out of 131 stocks in the Software – Application industry, PHR is ranked 118th. 

CIDM shares fell $1.20 (-100.00%) in premarket trading Wednesday. Year-to-date, CIDM has gained 84.55%, versus a 16.66% 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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