3 Downgraded Stocks to Avoid Like the Plague in July

NASDAQ: CIDM | Cinedigm Corp - News, Ratings, and Charts

CIDM – Some market gurus are forecasting a downturn in the months ahead. Whether or not that happens, it’s always good to make sure you avoid stocks that have the potential for losses. That’s why you should avoid stocks like Cinedigm (CIDM), MongoDB (MDB), and Phreesia (PHR), which were recently downgraded by our POWR Ratings system.

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), MongoDB (MDB), and Phreesia (PHR) and why you should avoid them.

Cinedigm (CIDM)

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)

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)

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...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CIDMGet RatingGet RatingGet Rating
MDBGet RatingGet RatingGet Rating
PHRGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

3 High-Yield Dividend Stocks to Boost Your Portfolio

Even though inflation appears to be cooling down, it still remains above the Fed’s 2% target. Amid ongoing geopolitical tensions, investors could consider looking into high-yield dividend stocks, Verizon Communications (VZ), Altria Group (MO), and Ares Capital (ARCC). Keep reading...

3 Fintech Stocks Revolutionizing Financial Services

Fintech is causing a revolutionary shift in the financial services market and this could be the right time to scoop up fundamentally strong fintech stocks like PayPal Holdings (PYPL), NerdWallet (NRDS), and Qifu Technology (QFIN). Read more...

3 Value Stocks With Strong Fundamentals to Buy Now

Value investing is highly favored as it focuses on purchasing undervalued stocks with solid fundamentals, providing the potential for high returns with lower risk and a disciplined, long-term approach. Therefore, it could be wise to invest in fundamentally sound, value stocks Expedia Group (EXPE), Incyte (INCY), and Albertsons Companies (ACI) for substantial long-term returns. Keep reading...

Stock Alert: Breakout or Fake Out?

The S&P 500 (SPY) officially made new highs this week. Perhaps a reason to celebrate more gains on the way...or perhaps there are signs this move is hollow leading to more downside soon on the way. To help solve this riddle, 44 year investment veteran Steve Reitmeister shares his views along with a trading plan and top picks to stay on the right side of the action. That is what Steve Reitmeister will cover in his latest commentary below. Read on for more...

Read More Stories

More Cinedigm Corp - (CIDM) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CIDM News