Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Ratings, we zero in on five names.
While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
Heartland Express Inc. (HTLD) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
The trucking company has been in a miserable downtrend for months, with lower highs and lower lows since peaking in early April. Volume trends have been strong and bearish, hence the bearish money flow.
Moving Average Convergence Divergence (MACD) continues on a sell signal and the cloud is red.
We could see this stock eventually fall to the single digits, but first up is the $13 level, where it might see some support. Put in a stop at $18.50.
Stericycle Inc. (SRCL) recently was downgraded to Hold with a C rating by TheStreet’s Quant Ratings.
The medical waste management company was in a good spot recently, with a strong surge on good turnover. But what goes up eventually comes down (even for a short while).
This stock has a bearish trend channel in place that is quite steep; money flow is weak and there is little support for the stock until the March lows at earliest. That would be around the low $60s, a 10%+ decline from current prices.
Money flow is awful; if short, put in a stop at $73 and ride it down.
This commentary is an excerpt from “5 Bearish Bets” a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
Want to find out the other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get “Bearish Bets” each week!
— Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
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