Each week, The Fly will announce the newest downgrades to Strong Sell in StockNews.com's POWR Ratings algorithmic model.
This Fly exclusive recap identifies stocks with over a $1B market capitalization that have been downgraded this week to the Strong Sell, or "F," rating in the service's proprietary model that analyzes 118 different factors, each of which contribute a little to the stock's predicted likelihood of underperformance. A bell curve distribution of StockNews.com's ratings shows that only the top 5% of the over 5,000 stocks rated by the system are assigned a "Strong Buy," or "A," rating while the bottom 5% are assigned a Strong Sell. The F-rated stocks would have tumbled an average of 18.98% a year since 1999, according to StockNews.com.
This week's downgrades to Strong Sell as determined by the POWR Ratings algorithm:
Teladoc Health (TDOC) - a direct-to-consumer telehealth provider
Oatly (OTLY) - the company identifies itself as the "original and largest oat drink company"
monday.com (MNDY) - operator of a "work operating system" platform, Work OS, that enables organizations to build work management tools and software applications
KE Holdings (BEKE) - operator of an integrated online and offline platform for housing transactions and services and owner of Lianjia, a real estate brokerage brand in China
Beauty Health (SKIN) - a company focused on delivering beauty health experiences whose flagship brand, HydraFacial, has an install base of 20,399 Delivery Systems
Proterra (PTRA) - a developer and producer of commercial electric vehicle technology
Silk Road Medical (SILK) - a medical device company focused on reducing the risk of stroke with its TransCarotid Artery Revascularization procedure
Bilibili (BILI) - operator of a video community for young generations in China
The Fly's recent reporting on these stocks includes:
On June 16, Oatly Group announced the results of its annual general meeting of shareholders, noting that the AGM resolved, in accordance with the board of directors' proposal, that no dividend was to be distributed for the financial year 2021 and that the company's result for the financial year 2021 was to be carried forward. The AGM also discharged the board of directors and the CEO from liability for the financial year 2021.
On June 15, Silk Road Medical announced a prospective study to evaluate the TCAR system in the treatment of standard surgical risk patients with carotid artery disease. The post-market study, called ROADSTER 3, will fulfill the U.S. Food and Drug Administration's condition of approval for the recent expansion of labeling for the ENROUTE Transcarotid Stent System, which now includes patients at high and standard risk of complications from carotid endarterectomy, the company said.
On June 14, Credit Suisse analyst Kaumil Gajrawala lowered the firm's price target on Oatly Group to $7 from $8 and kept an Outperform rating on the shares. The analyst said that, despite growth revisions, the plant-based dairy opportunity is still intact, though the margin story is "mixed." Gajrawala added that more capital was always needed to fund the next leg of growth, but inflation and capacity delays have pushed up the timing.
On June 13, JPMorgan analyst Alex Yao raised the firm's price target on Bilibili to $25 from $19 and kept a Neutral rating on the shares.
On June 12, Goldman Sachs analyst Timothy Zhao raised the firm's price target on KE Holdings to $23 from $21.70 and kept a Buy rating on the shares. The analyst also initiated coverage of the Hong Kong shares with a Buy rating and HK$60 price target. As China's largest online and offline housing transactions and services platform, KE will continue to grow its leadership in China's home transaction brokerage services market, Zhao said. He remains constructive on the company's new initiatives beyond housing transactions and expects its revenue from home renovation and furnishing services to account for 13% of total revenue by 2025.