Over the last two weeks, the market has been steadily moving lower. There are increasing signs of economic stress in terms of supply chain issues, coronavirus case counts continuing to rise, and signs that the consumer may be tapped out.
Investor uneasiness might weigh down the market in the months ahead, presenting some attractive buying opportunities, however in order to take advantage of these opportunities, investors should consider selling stocks with weak fundamentals and technicals.
McEwen Mining (MUX), Minerva Neurosciences (NERV), and American Resources Corporation (AREC) were recently downgraded in the POWR Ratings. Investors who own these stocks should reevaluate their positions as soon as possible.
MUX is a precious metal mining company that operates in the United States. MUX also evaluates potential mining sites outside of the continental United States yet its primary focus is on extracting valuable precious metals from right here at home.
MUX is a Strong Sell as it has an F POWR Rating grade. The stock has an F grade in the Quality and Momentum components of the POWR Ratings. MUX has D grades in the Value and Stability components. Investors who would like to find out how MUX performs in the rest of the POWR Ratings grades such as Sentiment and Growth can do so by clicking here.
Out of the 41 publicly traded companies in the Miners - Diversified space, MUX is ranked 33rd. You can find out more about this segment by clicking here.
MUX has a beta of 1.15, meaning it is not egregiously volatile. The stock is currently trading 28 cents above its 52-week low of 90 cents. MUX has a 52-week high of $1.71.
MUX's price return last year was a disappointing -22.44%. The stock has a three-month price return of -19.73% and a three-year price return of -39.62%.
NERV, a clinical-stage biopharma corporation, is primarily focused on bringing treatments for central nervous system diseases to market. NERV’s drugs help treat those battling Parkinson’s disease, schizophrenia, insomnia, and depression.
NERV has an F POWR Rating grade along with D grades in the Quality, Momentum, Value, and Growth components. You can find out how NERV fares in the POWR Rating components of Sentiment and Stability by clicking here.
A total of 505 stocks comprise the Biotech category. NERV is ranked 480th out of these stocks. You can learn more about the Biotech category by clicking here.
NERV's year-to-date price return is -28.63%. The stock had a 2020 price return of -67.09%. NERV's three-year price return is even worse at -84.10%.
Investors fled NERV after its leading drug candidate, roluperidone, was declared to be a late-stage failure in late May. However, the stock temporarily bounced back soon after only to subsequently move back down below its prior May low.
NERV is now trading within 13 cents of its 52-week low of $1.54. The stock's 52-week high is $4.12. NERV's beta of 1.06 is comparably low so it probably won't make a significant move even if the market soars. NERV is too risky to invest in at this point. Do not establish a position in NERV until the company releases some positive news about its treatments currently in the pipeline.
Located in Fishers, Indiana, AREC has operations in West Virginia and the Appalachian region to the east of Kentucky. AREC is primarily focused on extracting and processing pulverized and metallurgical coal. The company supplies such raw materials to infrastructure specialists.
AREC is a penny stock trading at $2.12. The stock's 52-week low is $1.26. AREC's 52-week high is a comparably lofty $8.02.
AREC's POWR Rating components are as interesting as it gets. The stock has an F POWR Rating grade yet it has an A Momentum component grade and F grades in the Value and Stability components. You can find out how AREC grades out in the Value, Quality, and Growth components by clicking here.
AREC is ranked last out of 10 stocks in its Coal segment. Investors looking for Coal stocks to buy or short can learn more about the publicly traded companies that comprise this space by clicking here.
AREC's latest quarterly revenue estimates did not come to fruition. The company reported a second-quarter loss. AREC's latest quarterly loss of 13 cents per share is particularly disturbing as the consensus estimate was a loss of a mere six cents. AREC has failed to surpass consensus earnings per share estimates in each of the prior four quarters.
MUX shares were trading at $1.12 per share on Thursday afternoon, down $0.07 (-5.51%). Year-to-date, MUX has gained 13.71%, versus a 19.89% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.3 Downgraded Stocks to Sell in a Shaky Market appeared first on StockNews.com