Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each Friday that look bearish.
While we will not be weighing in with fundamental analysis we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
Fossil
Fossil Group Inc. (FOSL) recently was downgraded to Sell with a D rating by TheStreet's Quant Ratings.
This watchmaker picked up some unwanted competition from Apple Inc. (AAPL) a few years back and it just hasn't been the same since. The longer-term chart is hideous, but even so the daily chart shows Fossil may soon become one!
There's a double moving average convergence divergence (MACD) sell signal here while the cloud points lower. Perhaps there's a sideways bounce here and then back to lower prices.
The stock is really extended here, but a move to $9 or so and short away.
Hologic
Hologic Inc. (HOLX) recently was downgraded to Hold with a C rating by TheStreet's Quant Ratings.
Hologic is a repeat offender here among our Bearish Bets stocks as this maker of medical diagnostic products was massacred last week on whopping volume. A triple Moving Average Convergence Divergence (MACD) sell signal here has this stock pegged for a move to the June lows before too long.
The channel was broken last week and there has been a tepid response from the buyers. There is no interest in getting long here, with the Relative Strength Index (RSI) weak. Short for a move to the low $40s.
This commentary is an excerpt from "5 Bearish Bets" a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
Want to find out the three other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get "Bearish Bets" each week!
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
