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3 Downgraded Stocks to Sell This Summer While the large-cap dominated indices like the S&P 500 and Nasdaq are a few points away from all-time highs, there is considerably more weakness under...

By Patrick Ryan

entrepreneur daily

This story originally appeared on StockNews

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While the large-cap dominated indices like the S&P 500 and Nasdaq are a few points away from all-time highs, there is considerably more weakness under the surface. The POWR Ratings can help you identify stocks that are weakening and vulnerable to a deeper pullback. Below, we provide a look at three of the latest POWR Ratings downgrades in Twilio (TWLO), Precipio (PRPO), and Independence Contract Drilling (ICD).

While the large-cap dominated indices like the S&P 500 and Nasdaq are a few points away from all-time highs, there is considerably more weakness under the surface.

In fact, certain stocks are weakening on a technical and fundamental basis. If the market environment gets more bearish, these stocks could be vulnerable to a deeper pullback.

The POWR Ratings can help you identify the best and worst stocks in the market. Below, we provide a look at three of the latest POWR Ratings downgrades in Twilio (TWLO), Precipio (PRPO), and Independence Contract Drilling (ICD).

TWLO

Based in San Francisco, TWLO makes money through Platform-as-a-Service via cloud communications. TWLO empowers developers to create, scale and use real-time communications in software applications. The TWLO platform has the following three layers: Super Network, Programmable Communications Cloud, and Engagement Cloud. Part of TWLO's value offering is providing software developers with the ability to add video, messaging, and voice capabilities with ease.

TWLO has an F POWR Rating grade. The stock has an F Quality component, a D Value component, and a D Stability component. Click here to find out how TWLO fares in the Momentum, Sentiment, and Growth components of the POWR Ratings.

Unfortunately, TWLO is ranked last of the 15 stocks in the Software - SAAS space. Investors can learn more about the stocks in this sector by clicking here.

TWLO has a 1.43 beta. The stock has a year-to-date price return of 12% yet its one-month and six-month price returns are -2.35% and -2.55%, respectively.

The analysts' average target price for TWLO is $352.67. The stock is currently trading at $379.55, meaning it has a downside potential of more than 13%.

PRPO

PRPO's platform eliminates the potential for medical misdiagnosis with the use of technology developed in partnership with some of the world's top academic institutions. PRPO is currently priced at $3.10. The stock's 52-week high is $6.40. PRPO's 52-week low is $1.72.

PRPO has an F POWR Rating grade. The stock has a B Growth component grade yet it has an F Quality component grade and Ds in the Sentiment and Value components. You can find out how PRPO fares in the rest of the POWR Ratings components by clicking here.

PRPO has a beta of 2.57. This is an egregiously high beta that indicates the stock is likely to make a drastic move in unison with the market's rollercoaster-like undulations.

PRPO is ranked toward the bottom of the 500 companies in the Biotech space. Only 31 other stocks rank worse than PRPO in the sector. Click here to learn more about the stocks in this space.

ICD

ICD's services are essential for land natural gas and oil drilling providers. Most of ICD's clients are in the United States. Based in Houston, Texas, ICD provides a fleet of ShaleDriller rigs for the development and procurement of oil and shale.

ICD has a beta of 6.98, indicating it is likely to provide minimal gains should the market jump significantly higher. ICD is currently priced at $3.10. The stock's 52-week high is $7.97. ICD's 52-week low is a measly $2.12.

ICD has an F POWR Rating grade, indicating it is a Strong Sell. ICD has a F Stability component grade along with Ds in the Quality and Growth components. ICD has a C Value component grade. You can find out ICD's POWR Rating grades in the Momentum and Sentiment components by clicking here.

Out of the 12 stocks in the Energy - Drilling sector, ICD is ranked 11th. You can find out more about how the stocks in this sector by clicking here. The Energy - Drilling sector as a whole has an F POWR Rating grade.


TWLO shares rose $0.45 (+0.12%) in premarket trading Tuesday. Year-to-date, TWLO has gained 12.26%, versus a 18.08% 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.

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The post 3 Downgraded Stocks to Sell This Summer appeared first on StockNews.com

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