Avoid These 3 Downgraded Stocks

The stock market has been much more challenging for investors in 2021 than 2020. Despite indices like the S&P 500 and Dow Jones hovering near new highs, there’s been much more weakness under the surface. Essentially, this is more of a “stock pickers’ market,” where…

picking the right stock matters much more. The POWR Ratings is one tool to help identify stocks under accumulation and distribution. The downgrades list is especially important as it can help you avoid weak stocks.

Below, we shine the spotlight on the following three stocks recently downgraded to a Strong Sell POWR Rating grade: Ashford Hospitality Trust (AHT – Get Rating), Ideal Power (IPWR – Get Rating), and Viad (VVI – Get Rating).

Ashford Hospitality Trust (AHT – Get Rating)

AHT is a real estate investment trust and corporation based in Maryland. AHT aims to capitalize on lodging industry opportunities. The company has half a dozen hotels in the fold including Radisson and Embassy Suites properties. In total, AHT has eight unique agreements about asset management and consulting.

AHT is trading at $3.63 yet its 52-week low is $1.27. The stock’s 52-week high is $18. AHT has a beta of 2.28 meaning it will likely be quite volatile and the market fluctuates.

AHT’s F POWR Rating grade is made even worse when you review the stock’s individual POWR Rating components. AHT has an F Stability grade and Ds in the Quality and Value components. Click here to learn how AHT fares in the remainder of the POWR Ratings components such as Sentiment, Growth, and Momentum.

Of the 22 publicly traded companies in the REITs – Hotel space, AHT is ranked 19th. This sector as a whole has an F POWR Ratings grade. You can learn more about this space by clicking here. A total of four analysts have issued AHT recommendations with three advising investors Hold and only one insisting the stock is a Buy.

AHT had a 2020 price return of -90%. The stock’s three-month price return is -9%. AHT’s three-year price return is a dismal -94%. The reopening of the economy is certainly good news for AHT. However, it will take some time for the hospitality industry to recover from its losses in 2020.

Ideal Power (IPWR – Get Rating)

IPWR develops technology for power conversion dubbed Power Packet Switching Architecture. IPWR also makes photovoltaic inverters along with battery converters that are useful in the context of energy storage on the grid and charging electric vehicles as quickly as possible. However, IPWR is a POWR Ratings disappointment with an F overall grade and Fs in the Quality, Value, and Stability components. Click here to find out how IPWR grades out in the Momentum, Growth, and Sentiment components.

Of the 86 publicly traded companies in the Industrial – Machinery segment, IPWR is ranked…

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