14 Oversold Stocks to Sell as Soon as You Can

NEW YORK (TheStreet) -- If you're a student of technical analysis, here's a list of stocks that, if you own them, you should sell them -- but not just yet, according to MKM Partners.

These stocks are oversold but still need to be axed from your portfolio, so hold onto them and wait for a better selling opportunity.

"The battle between the Bulls and Bears has never been more evenly matched. The SPX closed higher last week, marking six consecutive weeks alternating between gains and losses," Jonathan Krinsky, the Chief Market Technician at investment firm, MKM Partners, based in Stamford, Conn., wrote in an Aug. 16 note to clients. "It remains in the narrowest trading range in history, and as a result, the SPX's weekly Bollinger Bands are as narrow as they have been in over twenty years."

The S&P 500 index is up 2.07% this year. The Index has not registered a 5% pullback all year. "Since 1928, there have only been five years without such an occurrence, and only one in the last 50 years ('95)," Krinsky wrote.

"Until the trading range can break decisively, we recommend continuing to buy relative winners, and sell relative losers," the note said.

From a technical standpoint, the stocks all have charts that are generally are "below all of their rising moving averages, and have poor relative strength vs. the S&P 500. The presumption is they continue to underperform in the intermediate-term. In many cases, however, they are quite oversold, so we would prefer to wait for some sort of bounce before selling," Krinsky wrote.

Here's the list. And when you're done be sure to check out the 24 stocks to sell before September, according to MKM Partners. TheStreet added ratings from TheStreet Ratings for another perspective.

TheStreet Ratings, TheStreet's proprietary ratings tool, projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

Note: Year-to-date returns are based on Aug. 18, 2015 closing prices.

BWA Chart BWA data by YCharts

1. BorgWarner Inc. (BWA)
Industry: Consumer Goods & Services/Auto Parts & Equipment
Market Cap: $10.7 billion 
Year-to-date return: -14.1%

BorgWarner Inc. manufactures and sells engineered automotive systems and components primarily for powertrain applications worldwide.

TheStreet Ratings: Buy, B
TheStreet Said:
"We rate BORGWARNER INC (BWA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, BWA has a quick ratio of 1.64, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $286.60 million or 2.43% when compared to the same quarter last year. In addition, BORGWARNER INC has also modestly surpassed the industry average cash flow growth rate of -1.97%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Auto Components industry and the overall market on the basis of return on equity, BORGWARNER INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • BORGWARNER INC's earnings per share declined by 21.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BORGWARNER INC increased its bottom line by earning $2.86 versus $2.71 in the prior year. This year, the market expects an improvement in earnings ($3.01 versus $2.86).
  • BWA, with its decline in revenue, slightly underperformed the industry average of 5.3%. Since the same quarter one year prior, revenues slightly dropped by 7.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

 

CNX Chart CNX data by YCharts

2. Consol Energy Inc. (CNX)
Industry: Energy/Coal & Consumable Fuels
Market Cap: $3 billion
Year-to-date return: -62%

CONSOL Energy Inc., together with its subsidiaries, operates as an integrated energy company in the United States and internationally. The company operates through two divisions, Exploration and Production (E&P), and Coal.

TheStreet Ratings: Sell, D
TheStreet Said:
"We rate CONSOL ENERGY INC (CNX) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 2319.6% when compared to the same quarter one year ago, falling from -$24.93 million to -$603.30 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CONSOL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $65.85 million or 70.21% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 67.59%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2300.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • CONSOL ENERGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CONSOL ENERGY INC increased its bottom line by earning $0.73 versus $0.35 in the prior year. For the next year, the market is expecting a contraction of 80.8% in earnings ($0.14 versus $0.73).

 

CSX Chart CSX data by YCharts

3. CSX Corp. (CSX)
Industry: Industrials/Railroads
Market Cap: $29.1 billion
Year-to-date return: -18.2%

CSX Corporation, together with its subsidiaries, provides rail-based transportation services in the United States and Canada. It offers traditional rail services, and transports intermodal containers and trailers.

TheStreet Ratings: Buy, B
TheStreet Said:
"We rate CSX CORP (CSX) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CSX CORP has improved earnings per share by 5.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CSX CORP increased its bottom line by earning $1.93 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $1.93).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Road & Rail industry average. The net income increased by 4.5% when compared to the same quarter one year prior, going from $529.00 million to $553.00 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.88, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • 42.40% is the gross profit margin for CSX CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 18.04% trails the industry average.

 

DFS Chart DFS data by YCharts

4. Discover Financial Services (DFS)
Industry: Financial Services/Consumer Finance
Market Cap: $24.2 billion
Year-to-date return: -15%

Discover Financial Services operates as a direct banking and payment services company in the United States. It operates in two segments, Direct Banking and Payment Services.

TheStreet Ratings: Buy, B+
TheStreet Said: "We rate DISCOVER FINANCIAL SVCS INC (DFS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 12.3%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 49.80% is the gross profit margin for DISCOVER FINANCIAL SVCS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.09% is above that of the industry average.
  • DISCOVER FINANCIAL SVCS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, DISCOVER FINANCIAL SVCS INC reported lower earnings of $4.90 versus $4.96 in the prior year. This year, the market expects an improvement in earnings ($5.25 versus $4.90).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Consumer Finance industry average. The net income has decreased by 7.0% when compared to the same quarter one year ago, dropping from $644.00 million to $599.00 million.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, DFS has underperformed the S&P 500 Index, declining 9.83% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

 

DVN Chart DVN data by YCharts

5. Devon Energy Corp. (DVN)
Industry: Energy/Oil & Gas Exploration & Production
Market Cap: $19 billion
Year-to-date return: -24.5%

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs) in the United States and Canada.

TheStreet Ratings: Hold, C-
TheStreet Said:
"We rate DEVON ENERGY CORP (DVN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.79, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 34.4%. Since the same quarter one year prior, revenues fell by 24.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • DEVON ENERGY CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DEVON ENERGY CORP turned its bottom line around by earning $3.89 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 43.6% in earnings ($2.20 versus $3.89).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, DEVON ENERGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $1,101.00 million or 46.26% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

 

 

EMR Chart EMR data by YCharts

6. Emerson Electric Co. (EMR)
Industry: Industrials/Electric Components & Equipment
Market Cap: $33 billion
Year-to-date return: -18.8%

Emerson Electric Co. provides technology and engineering solutions to industrial, commercial, and consumer markets worldwide. It operates through five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solution.

TheStreet Ratings: Buy, B-
TheStreet Said: "We rate EMERSON ELECTRIC CO (EMR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub-par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Electrical Equipment industry and the overall market, EMERSON ELECTRIC CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • EMERSON ELECTRIC CO's earnings per share declined by 18.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EMERSON ELECTRIC CO increased its bottom line by earning $3.03 versus $2.76 in the prior year. This year, the market expects an improvement in earnings ($3.23 versus $3.03).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 14.4%. Since the same quarter one year prior, revenues fell by 12.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 43.30% is the gross profit margin for EMERSON ELECTRIC CO which we consider to be strong. Regardless of EMR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EMR's net profit margin of 10.24% compares favorably to the industry average.
  • EMR's debt-to-equity ratio of 0.85 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.92 is weak.

 

FCX Chart FCX data by YCharts

7. Freeport-McMoran Inc. (FCX)
Industry: Materials/Diversified Metals & Mining
Market Cap: $10.3 billion
Year-to-date return: -57.5%

Freeport-McMoRan Inc., a natural resource company, engages in the acquisition of mineral assets, and oil and natural gas resources. It primarily explores for copper, gold, molybdenum, cobalt, silver, and other metals, as well as oil and gas.

TheStreet Ratings: Sell, D+
TheStreet Said:
"We rate FREEPORT-MCMORAN INC (FCX) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 484.0% when compared to the same quarter one year ago, falling from $482.00 million to -$1,851.00 million.
  • Currently the debt-to-equity ratio of 1.51 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, FCX has a quick ratio of 0.58, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, FREEPORT-MCMORAN INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $1,069.00 million or 22.87% when compared to the same quarter last year. Despite a decrease in cash flow FREEPORT-MCMORAN INC is still fairing well by exceeding its industry average cash flow growth rate of -43.14%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 72.33%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 486.95% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
FLR Chart FLR data by YCharts

8. Fluor Corp. (FLR)
Industry: Industrials/Construction & Engineering
Market Cap: $6.9 billion
Year-to-date return: -21.5%

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, and project management services worldwide.

TheStreet Ratings: Hold, C+
TheStreet Said: "We rate FLUOR CORP (FLR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 90.9% when compared to the same quarter one year prior, rising from $77.79 million to $148.51 million.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.15, which illustrates the ability to avoid short-term cash problems.
  • FLR, with its decline in revenue, slightly underperformed the industry average of 5.1%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for FLUOR CORP is currently extremely low, coming in at 7.09%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 3.08% is above that of the industry average.
  • Net operating cash flow has decreased to $164.91 million or 31.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

 

FMC Chart FMC data by YCharts

9. FMC Corp. (FMC)
Industry: Materials/Fertilizers & Agricultural Chemicals
Market Cap: $6.3 billion
Year-to-date return: -16.8%

FMC Corporation, a diversified chemical company, provides solutions, applications, and products for the agricultural, consumer, and industrial markets in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific.

TheStreet Ratings: Hold, C
TheStreet Said:
"We rate FMC CORP (FMC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 11.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 580.4% when compared to the same quarter one year prior, rising from $109.10 million to $742.30 million.
  • 40.19% is the gross profit margin for FMC CORP which we consider to be strong. Regardless of FMC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FMC's net profit margin of 83.67% significantly outperformed against the industry.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Chemicals industry and the overall market, FMC CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $124.60 million or 41.19% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

 

 

 

FOSL Chart FOSL data by YCharts

10. Fossil Group Inc. (FOSL)
Industry: Consumer Goods & Services/Apparel, Accessories & Luxury Goods
Market Cap: $3 billion 
Year-to-date return: -43.8%

Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories. The company operates through four segments: North America Wholesale, Europe Wholesale, Asia Pacific Wholesale, and Direct to Consumer.

TheStreet Ratings: Hold, C
TheStreet Said: "We rate FOSSIL GROUP INC (FOSL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, FOSSIL GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for FOSSIL GROUP INC is rather high; currently it is at 58.25%. Regardless of FOSL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.38% trails the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Textiles, Apparel & Luxury Goods industry average, but is greater than that of the S&P 500. The net income increased by 4.0% when compared to the same quarter one year prior, going from $52.52 million to $54.65 million.
  • FOSL's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 36.43%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

 

GNW Chart GNW data by YCharts

11. Genworth Financial Inc. (GNW)
Industry: Financial Services/Multi-line Insurance
Market Cap: $2.5 billion
Year-to-date return: -40.8%

Genworth Financial, Inc. provides insurance, retirement, and home-ownership solutions in the United States and internationally. It operates through U.S. Life Insurance, International Mortgage Insurance, U.S. Mortgage Insurance, International Protection, and Runoff segments.

TheStreet Ratings: Sell, D+
TheStreet Said: "We rate GENWORTH FINANCIAL INC (GNW) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Insurance industry. The net income has significantly decreased by 209.7% when compared to the same quarter one year ago, falling from $176.00 million to -$193.00 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Insurance industry and the overall market, GENWORTH FINANCIAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GENWORTH FINANCIAL INC is rather low; currently it is at 16.13%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.94% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$113.00 million or 121.85% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 60.55%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 29.41% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

 

GPS Chart GPS data by YCharts

12. Gap Inc. (GPS)
Industry: Consumer Goods & Services/Apparel Retail
Market Cap: $14.5 billion
Year-to-date return: -17.7%

The Gap, Inc. operates as an apparel retail company worldwide. It offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brand name.

TheStreet Ratings: Buy, B
TheStreet Said: "We rate GAP INC (GPS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub-par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Specialty Retail industry and the overall market, GAP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 41.84% is the gross profit margin for GAP INC which we consider to be strong. Regardless of GPS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.53% trails the industry average.
  • GAP INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GAP INC increased its bottom line by earning $2.88 versus $2.75 in the prior year. For the next year, the market is expecting a contraction of 4.0% in earnings ($2.77 versus $2.88).

 

JOY Chart JOY data by YCharts

13. Joy Global Inc. (JOY)
Industry: Industrials/Construction & Farm Machinery & Heavy Tools
Market Cap: $2.5 billion
Year-to-date return: -45%

Joy Global Inc. manufactures and services mining equipment for the extraction of coal, copper, iron ore, oil sands, gold, and other minerals. It operates in two segments, Underground Mining Machinery and Surface Mining Equipment.

TheStreet Ratings: Hold, C
TheStreet Said:
"We rate JOY GLOBAL INC (JOY) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 15.3%. Since the same quarter one year prior, revenues fell by 12.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for JOY GLOBAL INC is currently lower than what is desirable, coming in at 32.52%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.77% trails that of the industry average.
  • Net operating cash flow has decreased to $71.12 million or 49.79% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

 

 

PWR Chart PWR data by YCharts

14. Quanta Services (PWR)
Industry: Industrials/Construction & Engineering
Market Cap: $5.1 billion
Year-to-date return: -13.7%

Quanta Services, Inc. provides specialty contracting services to the electric power, and oil and gas industries in North America and internationally.

TheStreet Ratings: Hold, C+
TheStreet Said: "We rate QUANTA SERVICES INC (PWR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • PWR's revenue growth has slightly outpaced the industry average of 5.1%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • PWR's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Construction & Engineering industry and the overall market, QUANTA SERVICES INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for QUANTA SERVICES INC is currently extremely low, coming in at 14.34%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.46% trails that of the industry average.

 

 

 

 

 

 

 

 

 

 

 

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