Stock market volatility is back after many months of placid trading. Only time will tell whether this is a dip or a correction.
Regardless of the outcome, investors should use this as an opportunity to go through their portfolios and look for stocks with deteriorating fundamentals and technicals.
The POWR Ratings are one tool that can help you achieve this objective. Let’s take a closer look at three of the latest POWR Ratings downgrades: Summit Wireless Technologies (WISA), US Gold Corp (USAU), and UiPath (PATH).
WISA
WISA, a provider of wireless immersive sound technology for smart devices and home entertainment systems, provides some of the best audio in the world. The bulk of WISA’s operations are in Asia though the company is based in lovely San Jose, California.
WISA is currently trading at $3.53. The stock's 52-week high is $5.63. WISA's 52-week low is $1.72.
WISA has an F POWR Rating grade with Fs in the Quality and Stability components of the POWR Ratings. WISA has a C grade in the Momentum and Sentiment components of the POWR Ratings. Click here to find out more about how WISA fares in the rest of the POWR Ratings components such as Value and Growth.
Of the 45 stocks in the Technology - Hardware space, only three are ranked worse than WISA. You can learn more about the publicly traded companies in the Technology – Hardware space by clicking here.
WISA had a '20 price return of -70%. The stock currently has a one-month price return of -12%.
USAU
This publicly-traded gold exploration business is primarily focused on finding precious metals in the United States. The company has an expansive portfolio of properties that contain gold and other precious metals.
USAU has a beta of 2.01. This figure indicates USAU will move with the market yet not prove egregiously volatile should the market swing high or low.
USAU has an F POWR Rating grade. This grade makes it clear the stock is a Strong Sell. USAU has an F Value component grade along with Ds in the Momentum, Quality, and Growth components. If you are curious as to how USAU fares in the rest of the POWR Ratings components such as Stability and Sentiment, you can find out by clicking here.
Of the 39 stocks in the Miners - Gold space, USAU is ranked 36th. Click here to learn more about the stocks in this sector.
USAU has a year-to-date price return of -38%. The stock has a one-month price return of -11% and a three-month price return of -3%.
PATH
PATH provides an end-to-end platform for the automation of digital business operations. PATH is currently trading at $62.12 per share. The stock's 52-week high is $90. PATH's 52-week low is $57.01.
PATH has a D grade in the POWR Ratings, indicating the stock is a Sell. PATH has an F Growth component grade, Ds in the Value and Stability components, and a C Quality component grade. You can find out how PATH fares in the Momentum and Sentiment components of the POWR Ratings by clicking here.
Of the 59 publicly traded companies in the Software - Business category, PATH is ranked 43rd. Click here to learn more about the stocks in this segment.
PATH is a recent IPO so its price returns are limited. Unfortunately, the stock has a -11% price return in the previous month along with a -10% price return in the prior three months.
The question is whether PATH can monetize automation better than the competition. PATH must succeed in convincing companies to pay for its value offering, harping on the fact that businesses waste big bucks on simple tasks that could be automated at a lower cost. The fact that PATH's revenue has recently slowed is certainly concerning. Wait until PATH gets into the black and returns its revenue to normal before establishing a position.
PATH shares were trading at $62.28 per share on Tuesday afternoon, up $2.11 (+3.51%). Year-to-date, PATH has declined -9.74%, versus a 16.05% 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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