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3 Stocks to Avoid at All Costs

Shares in St. Joe, VeriFone and JCPenney are beaten down ... and look to stay that way for a good, long while

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Verifone stock PAYYTD Performance: -16%
Return on Equity: -1.5%
Analyst Recommendation: Hold

VeriFone (PAY) was once almost untouchable in its industry, but now it seems everyone is gunning for digital — and especially mobile — payments.

It’s hard to imagine a worse competitive scenario than having everyone from Google (GOOG) to eBay’s (EBAY) PayPal to maybe even Facebook (FB) looking to eat your lunch.

Fourth-quarter earnings are on tap for mid-December, and they sure aren’t looking pretty. Earnings per share are forecast to drop to 26 cents from 76 cents a year ago. Meanwhile, revenue is projected to slide nearly 14%.

Furthermore, VeriFone stock still looks expensive relative to growth prospects. PAY goes for 16 times forward earnings even though it’s forecast to grow those earnings at an average pace of only 5% a year.

Article printed from InvestorPlace Media,

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