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.
Jazz Pharmaceuticals
Jazz Pharmaceuticals plc (JAZZ) recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
This biopharmaceutical company has fallen hard since flying high last fall. A series of lower highs and lower lows plague Jazz, with the downtrend line firmly in place.
Momentum is bearish now, and while we see a modest rally up over the last few days it has been on lower volume.
The Bollinger band is going to be resistance; this is a good place to short the name.
CenturyLink
CenturyLink, Inc. (CTL) recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
The provider of communication services was pounded recently as it cuts its dividend, but if you look at the chart you didn't need that news to know CenturyLink was already in a bear trend.
The stock has been guided lower by moving averages, and it is currently under the relevant 50- and 200-day moving averages.
Momentum is still pointed lower, and while we see a modest rally that is just the point to get short.
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.
