the POWR odds have been calculated to focus on stocks that have been downgraded or upgraded. Take a look at the latest degradations and you’ll find some familiar names.
The bottom line is that many stocks have reached new highs during the pandemic without sufficient justification. In other cases, these degradations are the result of fundamentals going in the wrong direction.
Without further ado, let’s take a look at three of the latest downgrades to POWR ratings in MongoDB (MDB), Hyatt Hotels (H) and Almaden Minerals (AAU).
MDB provides a database platform, cloud management services, business intelligence products and more. Companies in all kinds of industries, from healthcare and media, government, financial services and entertainment, use MDB’s technology products.
MDB has an overall rating of F, which translates into a strong sell rating in our POWR ratings. The company has D ratings in the Value, Growth, Sentiment and Stability components of the POWR ratings. Investors who are curious about how MDB ranks in the rest of the components like Quality and Momentum can find out by clicking here.
Of the 128 stocks in the Software – Applications sector, MDB is ranked 117th. Click here to find the top ranked stocks in this industry. The stock has grown 570% over the past three years. Its price / sell ratio of 35.5% is quite high, indicating that the stock is very overvalued.
Click here to view our 2021 Cloud Computing Industry Report
Hyatt Hotels (H)
H is a global hospitality company that develops, operates, manages, franchises and licenses properties such as hotels and resorts. As of the spring of this year, H had over 1,000 properties. H has an overall grade of D and a sales grade in our POWR rating system. The company has a sentiment score of F and D scores in the Value, Growth and Stability components. Click here to learn more about H pricing in the rest of the components such as Quality and Momentum.
Of the 19 publicly traded companies in the travel industry – hotels / resorts, H is ranked second to last, ranking 18th overall. You can find the best stocks in this industry by clicking here. H had a -17% return in 2020 and the three-month stock return is less than 2%, which means it didn’t really wow investors in the last financial quarter.
Analysts are also bearish on H, setting an average price target of $ 76.47 for the stock. If H reaches this price, it will have fallen by almost 7%. The lowest analyst target price for H is $ 55. If you are still considering investing in H, take into account that only one Wall Street analyst assigns him a purchase.
Almaden minerals (UAU)
AAU is a mineral explorer who specializes in launching new mining projects. AAU aims to find precious metals including gold, silver and copper. AAU operations take place across North America. The company’s head office is in Vancouver, Canada.
AAU is a letdown in POWR ratings with an overall rating indicating that it has a strong sell rating. The company has an F quality rating and D ratings in the Value and Growth components. AAU also has C ratings in the Sentiment and Stability components. Click here to see the stock prices in the Momentum component.
Of the 50 listed companies in the miners sector rated F – Diversified, AAU is ranked 44th. Although there are some good companies in this industry that you can find by clicking here. AAU stock has performed very well recently, falling 20% last year and almost 10% in the last three months.
Click here to view our 2021 Gold and Silver Industry Report
MDB shares were trading at $ 386.72 per share on Wednesday morning, up $ 5.78 (+ 1.52%). Year-to-date, the MDB has gained 7.71%, compared to a 14.08% increase in the benchmark S&P 500 over the same period.
About the author: Patrick Ryan
Patrick Ryan has over a dozen years of investment experience, particularly in the information technology, consumer and entertainment industries. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. After…