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Zacks.com Featured Highlights: Incyte, AMC Entertainment, Mercadolibre, PTC And Clean Harbors

Published 12/14/2017, 09:43 PM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL – December 15, 2017 - Stocks in this week’s article Incyte Corporation (NASDAQ:INCY) , AMC Entertainment Holdings, Inc. (NYSE:AMC) , Mercadolibre, Inc. (NASDAQ:MELI) , PTC Inc. (NASDAQ:PTC) and Clean Harbors, Inc. (NYSE:CLH) .

Dispose of These 5 Toxic Stocks or Sell Short for Profit

One of the keys to successful investing is precise identification of overhyped toxic stocks and the correctly priced ones. But it is not easy to accurately distinguish between these two types of stocks. Investors who can correctly spot the toxic stocks and get rid of them at the right time are likely to benefit at the end.

Usually, overblown toxic stocks are susceptible to external shocks and are loaded with hefty amount of debts. Also, the price of the toxic stocks is unjustifiably high. The high price of toxic stocks is only short-lived as the current bloated price of the toxic stocks is higher than its intrinsic value.

The exorbitant price of toxic stocks can be due to either an irrational exuberance associated with them or some fundamental drawbacks associated with the stock. Owning such stocks for a long stretch of time can be detrimental to investors and may result in huge erosion of wealth.

Investors may gain from the accurate 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.

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So, picking up 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.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/285928/dispose-of-these-5-toxic-stocks-or-sell-short-for-gains

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.



MercadoLibre, Inc. (MELI): Free Stock Analysis Report

PTC Inc. (PTC): Free Stock Analysis Report
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AMC Entertainment Holdings, Inc. (AMC): Free Stock Analysis Report

Incyte Corporation (INCY): Free Stock Analysis Report

Clean Harbors, Inc. (CLH): Free Stock Analysis Report

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