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.
Zillow
Zillow Group Inc. (Z) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
After a nice bounce from a 67% drop the stock of this online real estate giant start to roll back over last week. Resistance was met at the 200-day moving average, and with that break of the $35 area this stock is destined for much lower prices.
The Relative Strength Index (RSI) is poor and money flow is bearish and getting weaker. Volume on the up days has been poor, and we could see the low $20s before too long. A short here is good; put a stop in at $41.
Lab Corp
Laboratory Corporation of America Holdings (LH) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
The clinical laboratory company's stock has been obliterated, down substantially in March on very heavy turnover. All the momentum gained in the first two months of the year was removed swiftly and on very heavy turnover.
The recent pull-up in price seemed promising, but the bear market had other plans. Nothing is spared in a bear market, and this could be one of the worst in history. There is some room to short here to $100 or even down to $95, but put a stop in at $125 (gap).
