The latest POWR Ratings are in. Each day, our POWR Ratings system evaluates stocks on numerous factors. This results in stock upgrades and downgrades. 

All in all, the POWR Ratings are calculated on 6,000+ stocks and ETFs. Thankfully, the latest POWR Ratings updates reveal more upgrades than downgrades.

But below, we provide a look at four of the latest POWR Ratings downgrades so you can avoid them: Luminar Technologies (LAZR), Seres Therapeutics (MCRB), Sabre Corporation (SABR), and Murphy Oil (MUR).

Luminar Technologies (LAZR)

LAZR specializes in sensors and software for autonomous automobiles. Previously known as Gores Metropoulos, LAZR is based in Florida. Though LAZR received plenty of attention for a December tweet that noted its sensors were employed on a Tesla (TSLA) vehicle, Tesla’s founder, Elon Musk, insisted that his company’s cars do not use such sensors. 

Furthermore, this might have been a trial run, so there is no tangible proof that Tesla and LAZR are official partners. In terms of the POWR Ratings, LAZR has “D” grades in the Buy & Hold Grade, Peer Grade, and Trade Grade components. IT is also ranked 58th out of 67 publicly traded companies in the Auto Parts industry.

The bottom line is LAZR will only meet expectations if autonomous driving fulfills its potential sooner. LAZR has not proven it has the manufacturing capabilities necessary to hit its sales estimate of $837 million by 2025. LAZR’s revenue for the current year is likely to come in at a mere $15 million.

Seres Therapeutics (MCRB)

MCRB provides a platform for microbiome therapeutics. The company’s primary focus is developing Ecobiotic microbiome therapeutics for the treatment of dysbiosis within the colonic microbiome.

The POWR Ratings reveal MCRB has “D” grades in the Peer Grade, Trade Grade, and Buy & Hold Grade components. MCRB is ranked 244 out of 483 stocks in the Biotech industry. MCRB has a three-month return of -22.53%.

There is still some question as to whether the gut microbiome will alter the course of medicine, meaning investing in MCRB might not be the most prudent decision at the current moment. Investors should wait on the sidelines until trials of MCRB products produce positive results that justify establishing a position in the company.

Sabre Corporation (SABR)

SABR’s technology is used in the hospitality and travel industries, both of which have been pummeled by the pandemic. In short, SABR’s marketplace connects hotels and travel companies with customers. It might take the entirety of 2021 or even longer for the travel and hospitality industries to return to normal, meaning SABR is likely to stagnate or decline in the months ahead. Add in the fact that SABR implemented a secondary stock offering, and investors have even more reason to worry.

Analysts have established an average price target of $11.50 for the stock, indicating it may be overpriced at its current trading level. The POWR Ratings reveal SABR has an “F” grade in the Buy & Hold Grade component, a “C” grade in the Trade Grade component, and a “D” grade in the Peer Grade component.

Of the nearly 70 publicly traded companies in the Internet industry, SABR is ranked 47th. The stock lost 44.95% in 2020 and is down 39.52% over the past three years.

Murphy Oil (MUR)

MUR is an oil and gas exploration and production business. It has operations throughout North America as well as the United Kingdom.

Analysts are bearish on MUR, establishing an average price target of $13.20 for the stock, indicating a potential 10% downside. Of the ten analysts who cover the stock, only two recommend buying, seven recommend holding, and one advises selling.

The POWR Ratings show MUR has “C” grades in the Peer Grade and Trade Grade components. Even worse is the fact that MUR has “F” grades in the Buy & Hold Grade component. MUR is ranked 73rd out of 108 stocks in the Energy – Oil & Gas industry. MUR lost 52.74% in 2020 and is down 51.65% over the past three years. Oil and gas have the potential to rebound in 2021, but there are better investment opportunities than MUR.

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LAZR shares were trading at $30.05 per share on Tuesday afternoon, down $0.49 (-1.60%). Year-to-date, LAZR has declined -11.62%, versus a 1.35% 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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