This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

11 Famous Financials to Sell

Goldman Sachs Group (GS)

Securities and investment management company Goldman Sachs (GS - Get Report) has also fallen on hard times as of late. Year-to-date, Goldman's stock has slipped -8.7%, compared to the broader markets which have remained close to even. Since last September, the stock has dropped -11.8%, so the problems at Goldman are not new. Additionally, GS underperformed earnings estimates by nearly -63%. Goldman reported EPS of $0.78, after experts projected EPS of $2.08. All these factors, as well as the chance that the legendary GS proprietary trading unit may be deep sixed due to new SEC rules, make Goldman Sachs an expensive stock to avoid.

JP Morgan Chase (JPM)

Compared to other financial stocks on this list, JP Morgan Chase (JPM) has not had a disastrous year. That being said, JPM's 2010 has been far from successful. Over the past nine months, JP Morgan has dropped -2%, compared to the broader markets which have remained even. Since last September, the stock is down -3%. Experts do not appear to be thrilled with the stock's performance either, projecting EPS of just $0.89 next quarter, despite EPS of $1.09 last quarter. Things could be worse for this financial stock, yet it still remains a stock to sell.

Lloyds (LYG)

Working primarily in the UK, Lloyds Banking Group provides a range of banking and financial services to its clients. This financial stock has done well in 2010, up +46% year-to-date. However, the stock still remains a shell of its former self with a stock price of just $4.78 and I'm not convinced that the upward momentum can continue much longer. There need to be wholesale improvements in lending, employment, foreclosures and consumer spending before gains like that will stick for any financial company. Get out of Lloyds while the getting is good.

Royal Bank of Scotland (RBS)

Royal Bank of Scotland (RBS) is another banking stock that at first glance seems to have had recent success. In 2010, the stock has climbed nearly +63%. While the first nine months of 2010 may have been kind to this financial stock, the last year has not. Despite the gain, RBS is still down -17% over the past year. Likewise, the stock is down an incredible -93% over the past five years. It's -8.3% profit margin in its last income statement is hardly a selling point -- unless it is investors that need to be doing the selling.

Wells Fargo & Co. (WFC)

Diversified Financial service company Wells Fargo (WFC) is another big-name financial stock worth selling. Since mid May, WFC's stock price has fallen -19.9%, or $6.54. In fact, it's been some time since Wells Fargo maintained any real financial growth, having dropped -11.8% over the past five years. More recently, WFC has disappointed stock holders by missing earnings estimates three of the last four quarters. This has caused experts to predict EPS of $0.54 this quarter after an EPS of $0.55 last quarter. Add a quarterly earnings growth of -3.5% into the equation, and Wells Fargo is a financial stock to sell.

As of this writing, Louis Navellier did not own a position in any of the stocks named here.

One of Wall Street's renowned growth investors, Louis Navellier is the editor of four investing newsletters: Emerging Growth (formerly known as MPT Review), Blue Chip Growth, Quantum Growth and Global Growth. His longest-running publication, Emerging Growth, has a track record of beating the market nearly 3 to 1. Navellier is the author of a BusinessWeek bestseller, "The Little Book That Makes You Rich," and the chairman and founder of Navellier & Associates, Inc.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HBC $0.00 0.00%
BCS $10.05 0.00%
BAC $14.56 0.00%
C $46.28 0.00%
GS $164.11 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs