The POWR Ratings have been calculated to zero in on stocks that have been downgraded or upgraded. Take a look at the latest downgrades and you will find some familiar names.
The bottom line is that plenty of stocks soared to new heights during the pandemic without sufficient justification. In other cases, these downgrades are the result of fundamentals going in the wrong direction.
Without further ado, let’s delve into three of the latest POWR Ratings downgrades in MongoDB (MDB), Hyatt Hotels (H), and Almaden Minerals (AAU).
MongoDB (MDB)
MDB provides a database platform, cloud management services, business intelligence products, and plenty more. Businesses in all sorts of industries ranging from healthcare to media, government, financial services and entertainment use MDB’s tech products.
MDB has an overall grade of F, which translates into a Strong Sell rating in our POWR Ratings. The company has D grades in the Value, Growth, Sentiment, and Stability components of the POWR Ratings. Investors who are curious as to how MDB grades out in the remainder of the components such as Quality and Momentum can find out by clicking here.
Out of the 128 stocks in the Software - Application industry, MDB is ranked 117th. Click here to find top-ranked stocks in this industry. The stock is up a whopping 570% over the past three years. Its price-to-sales ratio of 35.5% is quite high indicating the stock is very overvalued.
Click here to check out our Cloud Computing Industry Report for 2021
Hyatt Hotels (H)
H is a worldwide hospitality business that develops, operates, manages, franchises, and licenses properties such as hotels and resorts. As of the spring of this year, H had over 1,000 properties. H has an overall grade of D and a Sell rating in our POWR Ratings system. The company has a Sentiment Grade of F and grades of D in the Value, Growth, and Stability components. Click here to learn more about how H fares in the rest of the components such as Quality and Momentum.
Out of the 19 publicly traded companies in the Travel - Hotels/Resorts industry, H is ranked second last, slotting in at number 18 overall. You can find top stocks in this industry by clicking here. H had a 2020 price return of -17% and the stock's three-month price return is under 2%, meaning it has not exactly dazzled investors in the latest financial quarter.
Analysts are also bearish on H, setting an average target price of $76.47 for the stock. If H reaches this price point, it will have declined by nearly 7%. The analysts' lowest target price for H is $55. If you are still considering investing in H, consider the fact that only one Wall Street analyst rates it a Buy.
Almaden Minerals (AAU)
AAU is a mineral explorer that specializes in spearheading new mineral projects. AAU has its sights set on finding precious metals including gold, silver, and copper. AAU’s operations take place throughout North America. The company’s headquarters is in Vancouver, Canada.
AAU is a disappointment in the POWR Ratings with an overall grade of indicating it has a Strong Sell rating. The company has an F Quality Grade and grades of D in the Value and Growth components. AAU also has C grades in the Sentiment and Stability components. Click here to find out how the stock fares in the Momentum component.
Of the 50 publicly traded companies in the F-rated Miners - Diversified industry, AAU is ranked 44th. Though there are some good companies in this industry which you can find by clicking here. AAU's stock has exactly performed well recently as it was down 20% last year and down nearly 10% over the past three months.
Click here to check out our Gold and Silver Industry Report for 2021
MDB shares were trading at $386.72 per share on Wednesday morning, up $5.78 (+1.52%). Year-to-date, MDB has gained 7.71%, versus a 14.08% 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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