Although the stock market continues to hover near all-time highs, there are some signs of distribution under the surface. This is better seen by the Russell 2000's 4% decline over the last couple of days. Given concerns around inflation, slowing growth, and geopolitical risks, it's possible that there could be more selling around the corner. The POWR Ratings can help you identify the most vulnerable stocks that are already weakening on a technical and fundamental basis.
Metromile (MILE), Latch (LTCH), and GrowGeneration Corp. (GRWG) are three of the latest POWR Ratings downgrades. Below, we provide a look at each of these downgraded stocks.
MILE
MILE is a digital insurance provider. MILE’s auto insurance is offered in real-time, making it easy and quick to insure a car before hitting the road. MILE’s customers also appreciate the company's highly personalized automobile insurance options.
MILE has an F POWR Rating grade with an F Sentiment component grade and Ds in the Quality, Value, and Stability components. You can learn more about how MILE fares in the rest of the POWR Ratings components such as Momentum and Growth by clicking here.
Out of the 10 stocks in the Insurance - Accident & Supplemental category, MILE is ranked dead last. Click here to find out more about this sector.
MILE is currently trading at $4.58 per share. The stock has a 52-week high of $20.39. MILE has a 52-week low of $4.57. It is clear MILE is headed in the wrong direction.
Check out MILE's price returns and you will be disappointed. The stock has a six-month price return of -77%, a three-month price return of -36.65%, and a one-month price return of -36.39%.
LTCH
LTCH makes the enterprise Software-as-a-Service platform referred to as LatchOS. Based in New York, NY, LTCH is currently trading at $9.99. The stock's 52-week high is $19.70. LTCH has a 52-week low of $9.55.
LTCH has Ds in the POWR Rating components of Quality, Sentiment, Value, and Growth. You can find out how LTCH grades out in the rest of the POWR Ratings components such as Momentum and Stability by clicking here.
Of the 145 publicly traded companies in the Software - Application space, LTCH is ranked 133rd. Investors who are interested in learning more about the stocks in this segment can do so by clicking here.
LTCH has price returns in the red. The company’s year-to-date price return is -1.28%. LTCH has a one-month price return of -9.35%. The stock's six-month price return is -41.51%.
GRWG
GRWG owns and operates organic gardening and hydroponic retail specialty stores. GRWG has everything from organic soils to hydroponic equipment for indoor/outdoor use and cutting-edge lighting solutions. Both homeowners with green thumbs and commercial businesses rely on GRWG for growing solutions. Based in Pueblo, Colorado, GRWG primarily operates in the western portion of the country.
GRWG has an F grade in the Stability and Value components of the POWR Ratings. The stock has a D Quality component grade and a C Sentiment component grade. Investors can learn how GRWG fares in the POWR Ratings components of Momentum and Growth by clicking here.
Out of the 66 stocks in the Home Improvement & Goods category, GRWG is ranked dead last. This industry as a whole has a B POWR Rating grade. You can find out more about the stocks in the space by clicking here.
GRWG has a forward P/E ratio of 61.54 so there is an argument to be made it is overvalued at $30.62 per share. GRWG has a 52-week high of $67.75. The stock's 52-week low is $13.11. GRWG has a 2.88 beta so it will move quite sharply if the market takes a major turn for the better or worse.
GRWG shares were trading at $29.80 per share on Tuesday morning, down $0.82 (-2.68%). Year-to-date, GRWG has declined -25.91%, versus a 19.59% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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