Stocks or Equity are financial instruments that reflect ownership of a portion of the issuing firm. The primary purpose for purchasing stock is to profit from a share price rise. this implies that someone buys a stock with the belief that its value will rise over time. That shares will be sold later, allowing the initial investor to benefit handsomely. But not all stocks are to be bought. The same way some stocks rise is the same way some plummet into oblivion (fall drastically).
At current levels, the coronavirus outbreak makes a number of stocks bad for business. Even before COVID-19 hit the scene, Wall Street wasn't completely sold on those extensive, brand-name stocks. An analysis was done on the broader market for stocks with high market values and analysis was also done for the worst stocks to buy.
Below are examples of three of the worst stocks you can purchase now.
1. INTEL
Market value: $243.6 billion
Dividend yield: 2.3%
Analysts' average recommendation: 2.93
Intel (INTC, $56.96) has established itself as Wall Street's leading chipmaker. It's standing as one of the Dow's greatest dividend growth companies has also helped it gain a following However, even before the slump, the analyst community rated INTC as a Strong Hold. The worldwide delay caused by the coronavirus isn't helping the chipmaker. True, six experts rate the Dow component as a Strong Buy, while the other six rates it as a Buy. Intel should be alright in the long term, but its present analyst limbo makes it one of the worst companies to purchase stocks from right now.
2. VENTAS
Market value: $19.3 billion
Dividend yield: 6.1%
Analysts' average recommendation: 2.96
The real estate investment trust that's about medical office facilities, senior living facilities, and real estate has lost more than 17% in the last 52 weeks, with no signs of improvement in sight. Ventas (VTR, $51.79) is another name that does not thrill analysts.
The major reason Ventas is among the worst companies to purchase right now? There is a weakness in the senior housing category.
"Ventas has a large, diversified portfolio of healthcare assets, with advantages in terms of costs of capital, scale and reach," writes Stifel, which rates share at Hold. "However, we don't expect growth in 2020 and there are continued portfolio risks, particularly in its managed seniors housing portfolio."
Ventas is a fantastic REIT to purchase and keep for the long term, but now may not be the greatest moment to invest.
3. J.B. HUNT TRANSPORT SERVICES.
Market value: $9.9 billion
Dividend yield: 1.2%
Analysts' average recommendation: 2.96
J.B. Hunt Transport Services (JBHT, $93.09) is the undisputed king of intermodal transportation. According to Argus, which rates the stock as a Hold, the firm was already plagued by lower demand and excessive inventory levels. Analysts note that developments in the railroad business and e-commerce are working against the brand. Add in a coronavirus-caused logistical bottleneck, and most Wall Street analysts are on the fence about JBHT. Over the last year, the stock has dropped over 11%. Indeed, the Dow Jones Transportation Average, a similar index to the industrial average, just experienced its first bear market in three years (a drop of 20% or more from a peak). Stay away for the time being, but keep an eye on JBHT.
Hi @koladammy
This post you share with content as if it was created by you is a copy, and in some sentences, what you are doing is paraphrasing what it says in the following in lace:
https://www.kiplinger.com/slideshow/investing/t052-s001-the-9-worst-stocks-to-buy-right-now/index.html
It is appreciated to create your own content, which is original and not plagiarism.
@steemcurator01
@crypto.piotr
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oh sorry about this, please what steps do I take to get my account unmuted?
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Thanks for the heads-up buddy, while it is a good thing to invest, we also need to be careful about the type of investment we make in order to prevent losses.
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Hi @koladammy
Please check Josevas comment and answer to it.
We cannot tolerate plagiarism so your post is being MUTEd.
Regards,
Piotr
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