Today there were 1321 Sell rated stocks according to the POWR Ratings system.  No doubt they are stocks that should be avoided in your portfolio.

Here is the interesting thing though. Many of them score well on popular value measures.

This makes sense when you realize that the POWR Ratings is focused on momentum. Thus, the top rated stocks are experiencing the most momentum and typically have higher measures on key value metrics like PE, PEG, P/S, Book Value etc.

Conversely those with the least momentum, and scored lowest on the POWR Ratings, are out of favor stocks. Many of them sinking to fairly low valuation metrics that could attract value investors hoping for a turnaround.

The problem is that most stocks heading lower in price are doing that because of weakness in their fundamental picture. Most likely attributable to a decline in their earnings outlook. My experience tells me to avoid those stocks like the plague as they typically go from bad to worse.

My goal today is not just to show you stocks that have POWR Ratings of D or F (Sell and Strong Sell). But also where the Wall Street analyst community still anticipates that prices will go even lower. Meaning where the average target price for shares is lower than current price. The difference is what we call “Downside %”.

Certainly you don’t want to own any of these stocks in your portfolio. On the other hand, some investors may appreciate the profit potential that could come from shorting these weak shares that could continue falling further in price.

Here is the full list of 11 Sell Rated stocks that also have the most downside potential.

Are your stocks Sell rated?

As noted above, there are over 1300 stocks today with Sell ratings. The best way to find out is by seeing their current POWR Rating on StockNews.com.

We allow free members of the site to see the ratings for each stock on their respective quote pages. If you are not currently a free member with this access, then sign up now.

Also here are links to 2 other popular destinations to make the best use of the POWR Ratings:

Full List of “A ”Rated Strong Buy Stocks

Reitmeister Total Return portfolio. This is where Steve Reitmeister employs his 40 years of investment experience to hand select the best POWR Ratings stocks.

DB shares closed at $7.18 on Friday, up $0.01 (+0.14%). Year-to-date, DB has declined -11.90%, versus a 18.16% rise in the benchmark S&P 500 index during the same period.

This article is brought to you courtesy of StockNews.com.

More Resources for the Stocks in this Article