4 Downgraded Stocks to Avoid for the Rest of the Year

The latest POWR Ratings have been published. These ratings are calculated daily based on various metrics to identify stocks as a Strong Buy, Buy, Hold, Sell, or Strong Sell…

The POWR Ratings reveal several stocks have been downgraded to “Strong Sell.”. If you own any of the stocks recently downgraded to “Sell” or “Strong Sell,” it is time to re-evaluate your position.

Let’s take a look at four of the more recent POWR Ratings downgrades: Entercom (ETM), Braemar Hotels & Resorts (BHR), Ardmore Shipping Corporation (ASC), and Liquidia Technologies (LQDA).

Entercom (ETM)

Radio advertising has declined as the pandemic has played out. Tune in to your local sports radio station or new radio station, and you will likely hear the same dozen commercials played over and over again. The reduction in advertising revenue has hurt ETM.

Though ETM is the fourth-largest radio broadcasting business in the United States, it is struggling. ETM executives went out of their way to set up radio stations throughout the country, hoping the geographic diversification would mitigate the impact of a potential recession. However, ETM has not fared well during the recession simply because businesses cut advertising before other costs.

ETM has “F” grades in the Trade Grade and Buy & Hold Grade POWR components. The stock has lost 69% year-to-date price return. Furthermore, ETM’s three-year price return is -86%.

Though ETM briefly spiked to $2.50 this past June, the stock sold off in the months to follow. ETM will likely remain a penny stock until after the recession ends.

Braemar Hotels & Resorts (BHR)

Real estate investment trusts are usually stable investments. However, when a REIT’s money stems from investments in luxury resorts and hotels, and then a pandemic strikes, most investors jump ship. This is exactly what occurred with BHR.

BHR has “F” grades in the Buy & Hold Grade and Trade Grade components. It is ranked 16 out of 18 in the REITs – Hotel industry. BHR has 72% year to date. 

Do not be fooled by BHR’s temporary spike up to $5.51 earlier this June. BHR quickly sold right back down to the $2.50 level. It’s best to

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