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These 5 Stocks are Giving A Strong Sell Signal

Published 10/06/2016, 09:25 AM
Updated 07/09/2023, 06:31 AM

Each week Forcerank runs a variety of games covering different industries. What we have found, is that the lowest ranked companies in their respective games deliver the biggest negative price movement and vice versa for those in the top position. This week we look at a list of companies whose ranks have trended down in the past few weeks. They include Walt Disney Company (NYSE:DIS), Shake Shack (NYSE:SHAK), GoPro Inc (NASDAQ:GPRO), Texas Instruments (NASDAQ:TXN) and Lions Gate Entertainment (NYSE:LGF).

Disney (DIS) | Media: Disney is at the forefront of takeover talks for both Netflix (NASDAQ:NFLX) and Twitter. It’s clear that Disney media networks have struggled due to wider adoption of cord cutting behavior. ESPN has been the biggest of its problems as subscription and revenue continue to decline. Twitter and Netflix would provide Disney with a non-traditional platform to display its original content. Unfortunately the Forcerank community isn’t convinced that an acquisition will provide a boost to the stock. After taking the top spot in last week’s media contest, Disney had the biggest drop this week, down to the sixth position. Shares are down 5% in the past month and 12% year to date.

Shake Shack (SHAK) | Restaurants: Shake Shack is the worst ranked company, only ahead of Wendy’s, in this week’s inaugural restaurants contest. It’s not surprising to see the burger chain near the bottom of this list given its recent struggles. Decelerating earnings and revenue growth have caused investors to lose confidence in this popular fast casual name. Shares have since been in a tailspin, dropping over 50% after hitting all-time highs in June 2015. Its technical charts suggest additional declines are on the horizon. Its 200 day moving average recently crossed over its 50 day average in a bearish manner while on balance volume and MACD remain in negative territory.

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GoPro (GPRO) | Hardware: GoPro still has a lot to do to prove to investors that its 20% jump over the past 30 days wasn’t an anomaly. The action camera maker was previously one of the most beaten down stocks due to waning demand for its products. Management has delivered negative growth on the top and bottom line for three consecutive quarters. Its recent gains comes on the back of the newly launched HERO 5 and Karma Drone along with a slew of stock upgrades. This run appears to be ending before it got started. Shares of GoPro are clearly overbought according to its relative strength index and bollinger bands. Meanwhile there remains a gap that has yet to be filled at the start of this bull run. Forcerank user’s hammered GoPro in the hardware contest this week, dropping its average rank to 4.94 from 3.77. This is indicative that a downturn is on the horizon.

Atlassian Corp Plc (NASDAQ:TEAM)| Enterprise Software Small: Atlassian remains one of the lowest ranked stocks in the enterprise software contest. Its user rank has significantly dropped to 6.3 this week from 5.79 last week. Shares are down 3% in the past 5 days with no signs that the trend is reversing. Its MACD just had a bearish crossover while on balance volume extends down. There remains a gap at $27.50, well below its current price, that has yet to be filled.

Lions Gate Entertainment (LGF) | Media: Lion’s Gate saw a big dip in this week’s contests, to a consensus ranking of 8.43 this week from 5.39 last week. This drastic plunge is indicative of a decline in the stocks. Like some of the other names on this list, there is still a large gap below that has yet to be filled. More recently, its 50 day average just crossed the 20 day average in a bearish manners. At the same time, the MACD made a similar bearish move signaling a slow period in the near future.

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