3 Downgraded Stocks to Avoid

The POWR Ratings are in. Compare the latest downgrades to those of the past and you will find fewer stocks have been downgraded. We just might be on the cusp of a raging bull market fueled by an economic reopening…

Though the economy is returning to normal and unemployment is gradually decreasing, some stocks are undeserving of your investing dollars. There is still plenty of money to be made by shorting stocks and buying put options.

Let’s take a look at three of the latest POWR Ratings downgrades: Jumia (JMIA), Micronet Enertec Technologies (MICT) and Alaska Air Group (ALK).

Jumia (JMIA – Get Rating)

JMIA, an e-commerce service provider, sells products ranging from clothing to sunglasses, watches, beauty items, health products and kids’ products. JMIA has F grades in the Sentiment and Value components of the POWR Ratings along with D grades in the Quality and Stability components.

Click here to learn more about how JMIA fares in the Momentum and Growth components. Of the 70 stocks in the Internet category, JMIA is ranked 64th. You can learn more about this industry by clicking here. JMIA’s year to date price return is -7.48%.

The top analysts are bearish on JMIA. The average price target for the stock is $13.67, meaning it has has downside potential of 64%. The analysts’ low target price for the stock is a mere $7.96.

Alterations in overarching investor sentiment and Treasury yields have pressured growth stocks such as JMIA to move lower in recent weeks. The bottom line is JMIA is in the red and will likely be there for several financial quarters or possibly even several years into the future. Another problem is JMIA is primarily reliant upon Africa’s infrastructure to transport its items. Africa’s infrastructure is still in development, meaning it will take some time for JMIA to hit its stride.

Micronet Enertec Technologies (MICT – Get Rating)

MICT, a mobile computing device provider, makes and markets computer systems, simulators, electronic instruments and test equipment for defense contractors. MICT also provides a trading technology that serves as an online brokerage and also as an avenue for wealth management. The company recently announced it will…

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