Our proprietary POWR Ratings evaluate stocks based on numerous measures. They are calculated daily, with plenty of upgrades and downgrades. The recent ratings include a few stocks headed in the wrong direction.

If you own any of the stocks listed below or are considering buying them, it is time to reconsider your stance. These stocks are showing bearish momentum, which could continue in the weeks ahead.

Without further ado, let’s delve into four of the latest POWR Ratings downgrades: Virgin Galactic Holdings (SPCE), Paramount Group (PGRE), Range Resources (RRC), and Scholastic (SCHL).

Virgin Galactic Holdings (SPCE)

If you have ever wanted to visit the stars or at least venture out into space, you have likely heard of SPCE. Though SPCE certainly has potential, the company is enduring a cash crunch, resorting to personal financing by founder Richard Branson. Though SPCE might one day provide a profitable space tourism service, that day is far away.

SPCE has “D” grades in the Industry Rank, Trade Grade, Peer Grade, and Buy & Hold Grade POWR components. SPCE is ranked 17th out of 22 stocks in the Airline industry.

SPCE jumped to $34 then slid right back down to its prior ceiling around $25. Add in the fact that it appears as though insiders are selling the stock, and investors should have even less confidence in the company.

Paramount Group (PGRE)

PGRE is a real estate investment trust. This company owns, operates, and manages office properties. PGRE offers asset management, financing, redevelopment, acquisitions, leasing, and more throughout the beltway, San Francisco, and New York City.

This is not the greatest time to be in the office real estate business. The shift towards working from home is likely here to stay, even after the pandemic ends.

PGRE has “D” grades in the Industry Rank, Trade Grade, Peer Grade, and Buy & Hold Grade POWR components. The stock is ranked 13th out of 15 stocks in the REITs – Office industry. The stock’s year-to-date price return is -33.11%. The average analyst price target is under $9, indicating that analysts expect the stock to fall.

Range Resources (RRC)

Exploring for oil and gas is no longer as lucrative as it once was. This phenomenon is evident in the downgrade of RRC. RRC explores for, develops, and acquires oil/gas properties throughout Northern Louisiana and the Appalachian Basin.

The POWR Ratings reveal RRC has “D” grades in the Peer Grade, Trade Grade, and Industry Rank components. RRC is ranked 45th out of 97 stocks in the Energy Oil & Gas industry. RRC returned a loss of 48.60% last year and has a three-year return of -57.26%.

Of the 13 analysts who cover the stock, four recommend buying, seven recommend holding, and two advise selling. In other words, you can find better stocks to invest in than RRC.

Scholastic (SCHL)

As the top distributor and publisher of kids’ books and a trailblazer in educational technology, SCHL is certainly worthy of your attention. However, the shift toward learning from home has reduced the need for children’s books. SCHL products and services are distributed directly to learning institutions and libraries, most of which have either closed entirely or are only partially open in recent months.

The POWR Ratings reveal SCHL has an “F” grade in the Buy & Hold Grade component, along with “D” grades in the Industry Rank and Peer Grade components. Out of 31 stocks in the Outsourcing – Education Services industry, SCHL is ranked 21st. The stock currently has a forward P/E ratio of 44.96, indicating it is likely overvalued.

SCHL’s latest earnings reports show the company missed expectations by a significant margin. Analyst expectations of $528 million in anticipated sales turned out to be significantly greater than actual sales of $406.2 million. The ongoing closure of schools, libraries, and book fairs will make it challenging for SCHL to meet investors’ expectations for at least another year. 

Want More Great Investing Ideas?

9 “MUST OWN” Growth Stocks for 2021

Where is the Santa Claus Stock Rally?

5 WINNING Stocks Chart Patterns

SPCE shares were trading at $24.80 per share on Tuesday morning, down $0.00 (0.00%). Year-to-date, SPCE has gained 114.72%, versus a 15.96% 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