Zacks.com Highlights: Covanta Holding, Altice USA, Incyte And Archrock
Zacks Investment Research | Jan 17, 2018 09:22PM ET
For Immediate Release
Chicago, IL – Jan 18, 2018 - Stocks in this week’s article include: Covanta Holding Corporation (NYSE:CVA) , Altice USA, Inc. (NYSE:ATUS) , Incyte Corp. (NASDAQ:INCY) and Archrock, Inc. (NYSE:AROC) .
Screen of the Week of Zacks Investment Research:
Discard These 4 Toxic Stocks or Sell Short for Profit
The secret behind successful investing is the proper identification of overhyped toxic stocks and the correctly priced ones. However, it is not easy to accurately pinpoint toxic stocks and abandon them at the right time to make some gains at the end.
Overblown toxic stocks are usually susceptible to outside shocks and loaded with a huge amount of debt. Also, the price of toxic stocks is unrealistically high. However, the inflated price of the toxic stocks is only short-lived as it is higher than its intrinsic value.
The unreasonably inflated price of toxic stocks can be due to either an irrational exuberance associated with them or some serious fundamental drawbacks inherent in the stock. Owning such bloated stocks for a long stretch of time can be harmful to investors and may result in huge loss of wealth.
Investors may gain from the correct identification of toxic stocks with the help of an investing strategy known as short selling. This strategy allows them to sell a stock first and then buy it when the price falls.
While short selling excels in bear markets, it typically loses money in bull markets.
So, identifying toxic stocks and discarding them at the right time is the key to protect your portfolio from big losses. Profits can be made by short selling them.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research
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