3 Well-Known Stocks to Sell

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For years, a theory on Wall Street has been that investors should own stocks in companies that they know and maybe even use their products.

stocks to sell
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There might be something comforting about having your money invested in companies that make products you use or stores you shop in, but that doesn’t necessarily mean those are the best investments.

I am a numbers guy and have learned over the years that even well-known companies can be stocks to sell. Company fundamentals have to be superior and earn high grades from Portfolio Grader; buying based solely on familiarity is just not a good idea.

Today, we’ll look at three such well-known names that have poor fundamentals: Weight Watchers (WTW), Mattel (MAT) and Hershey (HSY).

Stocks to Sell – Weight Watchers (WTW)

WEIGHTWATCHERS185Weight Watchers (WTW) is a very well-known company but also one of our stocks to sell. We all have a cousin, friend, uncle or co-worker who has tried to fight the battle of the bulge with the help of Weight Watchers meetings and point system to lose weight. However, the dieting field is now quite saturated, and Weight Watchers is falling behind the competition. The Weight Watcher subscriber base is shrinking as sales and profits decline.

Portfolio Grader noticed that fundamentals were dropping quicker than Weight Watchers customer’s waistlines, and downgraded Weight Watcher stock to an “F” back in January. Weight Watcher stock is a “strong sell” at the current price.

Stocks to Sell – Mattel (MAT)

Mattel MAT

Everybody is pretty familiar with Mattel (MAT), and I pretty much guarantee that if you have young kids, you have the Mattel toy products in your home. Mattel, of course, makes Barbie but also Hot Wheels, World Wrestling Entertainment (WWE) and Batman toys, among others.

So, most parents have some Mattel stuff lying around regardless of child gender … and probably have stepped on a Mattel product in the past 24 hours.

Despite the popularity of its toys, Mattel stock is not a great buy right now. Barbie sales are plunging, and Fisher-Price merchandise is falling almost as fast. Mattel posted two huge earnings disappointments in the most recent quarters, and analysts have soured on the shares. Portfolio Grader downgraded Mattel stock this year and, in May, lowered MAT’s ranking to an “F.” Mattel stock is a “strong sell” right now.

Stocks to Sell – Hershey (HSY)

Hershey HSYHershey (HSY) is a great example of a well-known company with poor fundamentals.

Everyone knows Hershey products and has probably consumed some of their offerings recently. Hershey sells candy, gum and other products all over the world, and just about all of us have recently given into the temptation to have a Reese’s Peanut Butter Cup or a handful of Hershey’s Kisses.

Hershey is a comfortable company, but a stock that you should be selling, not buying, right now. Hershey will see single-digit sales growth this year at best, and analysts have been lowering their forecasts for HSY stock. Soaring cocoa prices forced Hershey to raise its prices, which has hurt sales and profits. As Hershey fundamentals have taken a turn for the worse, Portfolio Grader has lowered the expectations for HSY stock. Portfolio Grader knocked Hershey stock down to an “F” this week and claims it’s a “strong sell.”

Louis Navellier is the editor of Blue Chip Growth.


Article printed from InvestorPlace Media, https://investorplace.com/2014/08/weight-watchers-mattel-hershey-stocks-to-sell/.

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