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 week 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.
Planet Fitness
Planet Fitness Inc. (PLNT) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
Even with some competitors filing for bankruptcy, this fitness center is not out of the woods. The bears are stalking this name closely and looking for a rollover, which may be coming shortly.
Moving Average Convergence Divergence (MACD) has rolled over here and the money flow has been getting weaker; also, volume trends are poor.
A break of $62 means this stock is likely heading down much lower, perhaps to $50. If short, put in a stop at $72.
Dave & Buster's
Dave and Buster's Entertainment Inc. (PLAY) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
The restaurant and entertainment name is waiting for a sign to reopen its stores, but unfortunately the coronavirus is keeping them at bay. There is time for it to play out, but will PLAY still be around? There's lots of speculation, and for now it appears the recent rally has run into some trouble.
The stock had some big volume this month (circled), but the price went nowhere, a sign of churn. That's not good, and until the price goes above the recent highs the bears are in charge.
If short, target the $12 area but put in a stop at $19.
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.
