Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Beware of These 2 WallStreetBets Stocks in the Utilities Sector

Stock MarketsDec 22, 2021 02:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Beware of These 2 WallStreetBets Stocks in the Utilities Sector

The utilities sector is facing risks from pending legislation on clean technology and from higher interest rates. And gas utility operators saw their earnings slump in the previous quarter. In addition, studies show that betting on fundamentally weak stocks mentioned on the WallStreetBets forum has resulted in losses for investors. Hence, we think fundamentally weak utility stocks that have been mentioned frequently on the forum, Eversource (ES) and Archaea (LFG), might be best avoided. Read on.The utilities sector faces uncertainty regarding the potential clean-energy legislative funding and higher interest rates due to an unprecedented rise in inflation. Furthermore, gas utility companies experienced an earnings slump year-over-year in the third quarter.

Earlier this year, the power of social media in stock market trading was tested when the discourse on the Reddit forum, r/WallStreetBets, drove selected stocks to a short-squeeze situation. However, the shares’ price gains could not be sustained because of the companies’ weak fundamentals. In addition, a capital.com study has found that investing in stocks mentioned on the platform resulted in losses half the time, and the losses worsened over time as investors held on to foundering stocks.

Therefore, we think utility stocks mentioned frequently on the WallStreetBets forum over the past 24 hours, Eversource Energy (NYSE:ES) and Archaea Energy Inc. (LFG), might be best avoided, given their weak fundamentals.

Continue reading on StockNews

Beware of These 2 WallStreetBets Stocks in the Utilities Sector
 

Related Articles

Russia stops Finland gas flows over payments dispute
Russia stops Finland gas flows over payments dispute By Reuters - May 21, 2022

By Terje Solsvik OSLO (Reuters) -Russia's Gazprom (MCX:GAZP) on Saturday halted gas exports to neighbouring Finland, the Finnish gas system operator said, the latest escalation of...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email