One of the most important aspects of investing is determining whether an underperforming stock is a true value opportunity or whether it’s struggling for a reason.
Right now, five blue-chip stocks stand out as recent laggards that should be given some more room to fall even further before investors hit the buy button.
These aren’t the “easy” stocks to avoid, like the JCPenneys (JCP) and RadioShacks (RSH) of the world. Instead, these are blue-chip stocks that might look attractive on the surface, but where the risks outweigh the potential returns.
The reasons range from the fundamental to the technical, but the common ground is the same: investors are better off looking for value plays elsewhere.