BOSTON ( TheStreet) -- Stocks trading under $5 have limited analysts' coverage, so it's not a good sign for investors when most researchers recommend dumping shares. The following five U.S. stocks trade at less than $5 and have garnered the biggest number of "sell" ratings, making them vulnerable to analysts' bearish views.
5. YRC Worldwide (YRCW)
Company Profile: YRC Worldwide offers transportation services.
Share Price: 29 cents (Sept. 8)2010 Stock Performance: -65% Analyst Consensus: Six analysts, or half of those covering YRC Worldwide, say investors should sell shares of the trucking company. Another five analysts rate YRC Worldwide as a "hold," and only one recommends buying the shares. Bearish Case: Credit Suisse analyst Christopher Ceraso wrote in an Aug. 4 research note that while less-than-truckload (LTL) fundamentals are improving, YRC Worldwide "still faces substantial headwinds in 2011. We maintain our view that any future value from profitability will not fall in the hands of common equity shareholders; but, rather, will accrue to the banks and the Teamsters." Ceraso has an "underperform," or "sell," rating on the trucking giant and a price target of 50 cents. No other analyst publishes a price target.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV