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:
Learn more about the POWR Ratings
The Fly's recent reporting on these stocks includes:
Earlier this week, Shopify reported Q1 results that Oppenheimer analyst Brian Schwartz said were "mostly below consensus estimates" and also announced plans to acquire Deliverr for $2.1B to accelerate its fulfillment business. Following the report, Schwartz lowered the firm's price target on the shares to $500 from $960 and said he recognizes that Shopify is now a "show me" stock, but maintains an Outperform rating on shares as he remains attracted by the large market opportunity Shopify addresses and its ability to grow GMV monetization.
Jefferies analyst Samad Samana said investors were braced for a shortfall at Shopify, particularly after weakness at other e-commerce companies, but the Q1 results "still fell short of the lowered bar." Samana lowered the firm's price target on Shopify to $550 from $1,350 to reflect downwardly revised estimates following the company's Q1 report and associated call, but keeps a Buy rating on the shares.
On April 26, Canopy Growth announced a series of initiatives to reduce costs and drive efficiency in order to accelerate its path to profitability. Aligned to Canopy Growth's FY23 strategic review, the Company is conducting the following actions: Reducing cost of goods sold in the Company's Canadian cannabis business by lowering per-gram cultivation costs through increased cultivation-related efficiencies and facility improvements; Implementing a flexible manufacturing platform inclusive of contract manufacturing for certain product formats; Rightsizing indirect costs and generating efficiencies across the Company's supply chain and procurement; Aligning selling, general and administrative costs with short-term business expectations by reducing third-party professional fees and office costs; and further streamlining the organization to drive process-related efficiencies.
On May 6, Susquehanna analyst Biju Perincheril lowered the firm's price target on Stem to $20 from $25 and kept a Positive rating on the shares after the company reported "strong" Q1 results. Revenue and EPS topped both his and consensus estimates and "importantly" backlog, bookings, and 12-month pipeline metrics all remain strong, Perincheril said. Meanwhile, the company seems to be less exposed to the AD/CVD investigation than feared, the analyst added.
On May 3, Wedbush analyst Daniel Ives downgraded C3.ai to Neutral from Outperform with a price target of $16, down from $30. While the company put together "solid" results in its most recent quarter, C3.ai continues to struggle to gain Street credibility following the very weak performance after the IPO, the analyst contends. With multiple executives leaving the company and naming its third CFO in just 18 months, the underlying growth story has yet to be seen as the demand for large enterprise AI deals lags throughout 2022 with some tougher days ahead, Ives added.
On May 1, XPeng announced that it delivered 9,002 Smart EVs in April, representing a 75% increase year-over-year. The April deliveries consisted of 3,714 P7 smart sports sedans, 3,564 P5 smart family sedans, as well as 1,724 G3i and G3 smart compact SUVs. As of April 30, year-to-date total deliveries reached 43,563, representing a 136% increase year-over-year. "The company has been and is continuing to actively navigate through the COVID situation, which in turn is affecting the overall supply chain, manufacturing and transportation of automobiles in China. April deliveries reflect the company's relentless effort to mitigate the current conditions with support from various authorities and industry partners," Xpeng said.
Shopify
-25.77 (-6.24%)
Las Vegas Sands
-0.88 (-2.47%)
Canopy Growth
+ (+0.00%)
XPeng
-0.565 (-2.45%)
C3.ai
-0.61 (-3.58%)
NexGen Energy
-0.155 (-3.34%)
Stem
+1.28 (+16.73%)
Lightspeed
-0.16 (-0.78%)
Mirati Therapeutics
-4.715 (-7.56%)
Proterra
-0.21 (-3.39%)
Kymera Therapeutics
-0.31 (-1.55%)
Lion Electric
-0.01 (-0.17%)
Lithium Americas
-1.25 (-4.77%)
NeoGenomics
-0.225 (-2.28%)