As the market braces up for the final week of a volatile September, major stock indices remain upbeat, recovering from the sell-off witnessed earlier this month. According to data compiled by John Hopkins University…
U.S. COVID-19 cases averaged about 120,000 per day over the last week, down from a seven-day average of more than 166,000 cases in early September. This, along with Pfizer CEO Albert Bourla’s statement that the United States could return to normalcy within a year, has induced optimism among investors concerning the economic recovery.
Since investors remain upbeat as the Fed decided to keep supporting the economy for now, and COVID-19 cases are declining, the stock market is expected to continue its bull run. However, not all stocks are good bets right now. Several ultra-popular stocks have rallied significantly over the past couple of months without possessing fundamental strength. Their weak financial health could trigger a sharp decline in their share prices in the near term.
SoFi Technologies (SOFI – Get Rating), Camber Energy Inc. (CEI – Get Rating), Northern Dynasty Minerals Ltd (NAK – Get Rating), and ReWalk Robotics Ltd. (RWLK – Get Rating) are three such stocks that have gained momentum because of their popularity among retail traders. However, given their bleak growth potential and poor fundamentals, these stocks are best avoided now.
SOFI, a finance company, operates an online platform that provides financial services. Lending; Financial Services; and Technology platforms are the three operational segments of the company. The company offers a wide range of services, including student loan refinancing, personal loans, auto loan refinance, home loans, mortgage loans, and insurance products for renters, homeowners, automobiles, etc.
For the second quarter that ended June 30, 2021, SOFI reported a net loss of $165.31 million, compared to a net profit of $7.81 million in the prior-year quarter. Its loss per share increased significantly from year-ago value to $0.48, while its cash and cash equivalents declined 47.1% year-over-year to $461.92 million. In addition, the company’s net cash from operating activities declined 79.1% from the year-ago value to $82.61 million.
Analysts expect its EPS to remain negative in fiscal 2021. While the stock has gained 26.1% over the past month, it has declined 15.5% over the past three months.
SOFI’s POWR Ratings are consistent with this bleak outlook. The stock has an overall grade of F, which translates into a Strong Sell rating in our proprietary ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
SOFI has an F grade for Value and Sentiment, and a D for Growth and Stability. Within the D-rated Financial Services (Enterprise) industry, it is ranked #101 out of 103 stocks. To see additional grades for Quality and Momentum, click here.
CEI is an independent oil and gas company that acquires, develops, and sells crude oil, natural gas, and natural gas liquids (NGL) in Texas. As of March 31, 2020, its total estimated proven reserves were 133,442 million barrels of oil equivalent, consisting of 54,850 barrels of crude oil reserves, 43,955 barrels of NGL reserves, and 207,823 million cubic feet of natural gas reserves.
In May, NYSE American notified CEI that it did not comply with the exchange’s continued listing standards as outlined in Section 1007 of the NYSE American Company Guide due to its failure to timely file its…
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