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.
Fleetcor Technologies
Fleetcor Technologies Inc. (FLT) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
This provider of digital payment technology has been on our list before; the money flow and trend of price are clearly down. Big volume to the downside in late June showed some capitulation selling, but the stock cannot seem to get out of its own way.
Below the big moving averages when markets are making new highs is not where the bulls like it; the January lows are a good target at the $240 level.
Put in a stop at $270 if short at $255 or so.
Constellation Brands
Constellation Brands (STZ) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
The beer, wine and spirits producer had strong earnings last week but that wasn’t enough to attract buyers. Maybe they are buying seltzer and hard liquor, but they are not buying the stock.
Money flow is very poor and price is about to break June support, which is big. The 200-day moving average is key here and could be tested soon; that’s a good target at $217.
Moving average convergence divergence (MACD) is on a sell signal. Put in a stop at $232.
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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