The market has put together a nice rally, following the market’s 5% dip. Indexes like the S&P 500 and Dow Jones made a new high. Is this the start of a deeper correction or the market going to keep trending higher.
While there are good arguments on both sides, these inflection points are often good opportunities to rebalance our portfolios. The POWR Ratings can help you identify the strongest and weakest stocks.
Below, we delve into three of the latest POWR Ratings downgrades: Geron (GERN), Gladstone (LAND), and Microvision (MVIS).
Geron (GERN)
GERN has a POWR Rating of F. The stock has D grades in the Quality, Sentiment, and Stability components of the POWR Ratings. If you are curious as to how GERN fares in the Momentum, Value, and Growth components, you can find out by clicking here. Of the 490 stocks in the Biotech industry, GERN is ranked 448. You can learn more about the publicly traded companies in the Biotech space by clicking here.
GERN has a one-month price return of -9.9% along with a six-month price return of -6% and a three-year price return of -48.66%. GERN recently released its latest quarterly update. Investors did not think much of the update, sending the company’s stock price down by nearly 9%. GERN revenue for the fourth quarter of ’20 came in at less than one-third of the company’s revenue in the same quarter one year ago. This healthcare business had a quarterly net loss of 7 cents per share, equating to $23.8 million.
Add in the fact that the ongoing pandemic is delaying GERN clinical trials and investors have even more reason to jump ship.
Gladstone (LAND)
LAND is a real estate business with external management. The company’s primary focus is farmland investment. All in all, LAND owns half a dozen farms in Florida and another half dozen in California. LAND has an F grade in the POWR Ratings with D grades in the Quality, Value, and Growth components. You can find out how LAND fares in the Sentiment and Stability components of the POWR Ratings by clicking here.
Of the 53 stocks in the REITs – Diversified segment, LAND is ranked dead last. Investors who would like to find out more about this industry can do so by clicking here. LAND has a fairly high forward P/E ratio of 28.15, especially considering it is an owner of farms. Though LAND has a somewhat attractive dividend of 2.79%, it merely takes one egregiously rainy season or another unexpected weather event to put this dividend in jeopardy.
Making matters worse is LAND’s latest financials. LAND’s quarterly funds from operation came in at a mere 15 cents per share when the analysts expected 19 cents per share.
Microvision (MVIS)
MVIS makes information display screens along with additional related technologies that make it easy to electronically generate information and images that are redirected onto human eyeballs. MVIS’s three primary revenue drivers are retinal scanning displays, optimal material technology, and imaging solutions.
It is particularly interesting to note MVIS dropped by a significant amount last month, declining 15% following the announcement of a brand new market offering. The company will raise $50 million of capital to support the development of the new offering by selling stock into the open market. Such offerings make investors think the stock will be diluted. As a result, MVIS dipped.
MVIS is ranked last of the 42 stocks in the Technology – Electronics industry. You can find out more about the publicly traded companies in this space by clicking here. MVIS has a B grade in the Momentum component of the POWR Ratings yet it has an F grade in the Value and Stability components. If you are curious as to how MVIS fares in the Quality, Sentiment, and Growth components, you can find out by clicking here.
Want More Great Investing Ideas?
9 “MUST OWN” Growth Stocks for 2021
How to Ride the 2021 Stock Market Bubble
5 WINNING Stocks Chart Patterns
MVIS shares were trading at $17.52 per share on Tuesday afternoon, down $0.30 (-1.68%). Year-to-date, MVIS has gained 225.65%, versus a 6.00% 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
Ticker | POWR Rating | Industry Rank | Rank in Industry |
MVIS | Get Rating | Get Rating | Get Rating |
LAND | Get Rating | Get Rating | Get Rating |
GERN | Get Rating | Get Rating | Get Rating |