3 Downgraded Stocks to Dump Now

NYSE: LYV | Live Nation Entertainment Inc. News, Ratings, and Charts

LYV – Despite the S&P 500’s recent bounce, the market environment remains perilous. Participation in the advance is limited which explains the underperformance of small and mid-caps index. Patrick Ryan identifies 3 stocks with deteriorating technicals and fundamentals: Blade Air Mobility (BLDE), Live Nation Entertainment (LYV), and Freightcar America (RAIL).

Despite the S&P 500’s recent bounce, the market environment remains perilous. Participation in the advance is limited which explains the underperformance of small and mid-caps index.

If selling pressure re-emerges, it’s likely that stocks showing signs of distribution and fundamental weakness could have another leg lower. Check out the latest POWR Ratings and you will find the most vulnerable stocks.

Let’s take a look at three of the more interesting POWR Ratings downgrades in Blade Air Mobility (BLDE), Live Nation Entertainment (LYV), and Freightcar America (RAIL).

BLDE

BLDE makes an air mobility platform with cutting-edge technology. This platform decreases travel friction with affordable alternatives to traditional air transportation.

BLDE is currently priced at $8.28. The stock’s 52-week high is $19.88. BLDE has a 52-week low of $6.41. BLDE has negative price returns in every period of time. The stock has a -25% year-to-date price return along with a six-month price return of -41%. BLDE has a three-month price return of -18%.

BLDE is ranked last of 16 stocks in its Air Freight & Shipping Services industry. Investors who would like to learn more about the stocks in this space can do so by clicking here.

BLDE has F grades in the Quality and Value components of the POWR Ratings. The stock has Ds in the Stability and Growth components. Investors can find out how BLDE fares in the Momentum and Sentiment components of the POWR Ratings by clicking here.

LYV

LYV certainly receives plenty of attention from the mainstream investing media yet it appears as though the stock is unworthy of its current price. LYV owns and operates entertainment venues. The company also generates revenue through the production, hosting, and promotion of live entertainment.

The rise of the Delta coronavirus variant spells trouble for LYV. If masks mandates return, people will return to social distancing, making it that much more challenging for live entertainment providers such as LYV to generate revenue.

LYV has a beta of 1.37. If the stock market becomes a rollercoaster, LYV’s low beta will likely keep LYV relatively stable. At the moment, LYV is priced at $78.98. The stock’s 52-week high is $94.63. LYV’s 52-week low is $44.95.

LYV is ranked outside of the top 10 of the 14 stocks that comprise the Entertainment – Sports & Theme Parks industry. You can find out more about the stocks in this space by clicking here.

LYV has a F Value component grade along with Ds in the Growth, Stability, and Sentiment components. You can find out how LYV fares in the Quality and Momentum components of the POWR Ratings by clicking here.

It is concerning that more analysts view LYV as a Hold than a Buy or Strong Buy. Exactly half a dozen analysts view LYV as a Hold, three view it as a Buy and four view it as a Strong Buy.

RAIL

RAIL makes railroad freight cars. In particular, RAIL specializes in railcars that carry coal. RAIL also makes mill gondola cars, flat cars, motor vehicle carriers, coil steel cars, and intermodal cars.

RAIL has an F POWR Rating grade. The stock has an F Stability component grade along with Ds in the Sentiment, Quality, and Value components. You can find out how RAIL fares in the Momentum and Growth components of the POWR Ratings by clicking here.

Of the 17 stocks in the Railroads segment, RAIL is ranked 16th. You can learn more about this segment by clicking here.

The analysts are not exactly pounding the table in favor of RAIL. Of the two analysts who have issued recommendations for the stock, both view it as a Hold.

Based in Chicago, RAIL has a beta of 2.49. This is a fairly high beta, meaning RAIL is likely to fluctuate should the market get rocky. The stock is priced at $5.47. RAIL has a 52-week low of $1.35. The stock’s 52-week high is $8.63. RAIL has a one-month price return of -10%. The stock has a three-month price return of -22%.

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LYV shares were trading at $80.61 per share on Tuesday morning, down $1.57 (-1.91%). Year-to-date, LYV has gained 9.70%, versus a 18.02% 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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RAILGet RatingGet RatingGet Rating

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