Are These Two Downgraded Stocks in Your Portfolio?

Not every stock is a winner, and for some stocks, prospects can get worse. What was once a stock you’d consider holding can the next day be a stock you couldn’t get out of your portfolio fast enough. Yet given the sheer size of the market, you can’t keep track of every last one. 

With WallStreetZen and our Zen Ratings system, you don’t have to. Just taking a look at our changes page (available with WallStreetZen Premium) will give you a clue on major shifts. If you’re looking for downturns and warning signs, look for stocks that get downgraded to D or F. If it’s downgraded to F, it’s in the lowest five percent of stocks we cover and has an average annualized return of -8.02%. Read more about those stocks here.

With that in mind, let’s take a look at a few recent downgrades.

A note from our sponsors...
Trump's Tariffs Are Reshaping Markets  

With the help from his system, Wall Street Legend reveals which companies could thrive and which could collapse under new economic policies.   

Grade any 3 stocks FREE to see if your portfolio is at risk.

Downgraded Stock 1: Crispr Therapeutics (NASDAQ: CRSP)

The gene editing company might generate a lot of headlines and interest, but that doesn’t necessarily mean it is the best move for your portfolio. Our Zen Ratings system found otherwise, recently downgrading CRSP to F.

More specifically, it received a Component Grade of F for Safety and Sentiment, and a D Component rating in Financials, Momentum, and Value. It has also had a rough year, down about 33% over the last 12 months, but this may not be enough to necessarily make CRSP a value stock to add to a portfolio. It may just be too risky for most.

Alternative Stock to Consider: PTC TheraPeutics (NASDAQ: PTCT)

Looking significantly better with strong earnings and better component grades, PTCT is a biotech company focusing on rare disorders. While concerns exist regarding investigations into potential securities law violations, it is unlikely to alter the company's fundamental operations. 

Downgraded Stock #2. Uranium Energy Corp (NYSEMKT: UEC)

It’s a tough time for uranium and nuclear power companies. The uranium industry is not recommended by our system (it is rated 145 out of 145 different industries). And UEC recently received a Zen Rating of F.

Why? Investors are currently not all that confident in UEC, and while there has been recent news regarding deals for nuclear energy to supply the massive amounts of power needed for AI, not every investor might have full faith in executive orders and deals (especially when the deal wasn’t with UEC). And while this was a boost for a moment, the momentum has not wholly kept up. 

If you look at the Component Grades for UEC, then you’ll quickly notice that the stock has Financials and Sentiment ratings of F. This indicates that UEC lacks investor confidence at the moment, and there are signs it is less able to handle its debts and liabilities as well as other companies.

Alternative Stock to Consider: Star Group LP (NYSE: SGU)

Just because Uranium is not recommended doesn’t mean you should rule out forms of energy. SGU provides fuel, gasoline, and home heating oil, all of which are likely to remain essential for the coming years and are far less controversial (rightly or wrongly) than nuclear power. It has a Zen Rating of A and may be a great value stock for some portfolios.

Again, these are just a few examples, and with WallStreetZen Premium and its unlimited watchlist, you can keep track of similar changes in ratings, key updates, and have all of the other information you need to properly manage your portfolio. 

Yet if you’re looking for a more guided approach for stock picks in the open ocean of options, Zen Investor is what you need. With it, our own Steve Reitmeister, with over 40 years of experience under his belt, provides investors with portfolio recommendations and regular market updates.

What to Do Next?

• 200 Stocks to Sell Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.