Groupe T. Rowe Price (TROW), GameStop (GME), Campbell’s Soup (CPB), and RPC (RES) are all losing a lot of money on the bottom line because they want to grow. This article will show why you might want to stay away from these stocks in February.
It can be hard to decide which stocks in February to sell or avoid. Even stocks that are thought to be “overpriced” can keep going up for days, weeks, or even months before they correct. But stocks with high valuations tend to fall the most in a sell-off. If you want to lower the risk in your portfolio, you should stay away from stocks with high valuations.
Here Are The Stocks in February That Needs To Be Avoided
As of January 6, 2023, the price is $9.20
As of January 6, 2023, the market cap was $1.993 billion.AA
RPC had a great year in 2022, with sales up about 90% from the year before. Just because of that, the stock could be sold for a profit.
But because it was one of the best performers of the year and is hard to short, Barron’s put it on a list of stock in February that could lose money in the future. The average rating from analysts is just “hold,” which is a pretty bad rating from a field that doesn’t like to say that investors should actually sell a stock.
Campbell’s Soup (CPB)
As of January 6, 2023, the price is $57.01
As of January 6, 2023, the market cap was $17.037 billion.
Campbell Soup did very well in 2022. Its stocks will went up by more than 40%, and the company actually benefited from rising prices.
Campbell Soup was able to raise prices in 2022 to cover its own rising costs, which led to more sales and more money in the bank. From a historical perspective, that’s a pretty big move for the stock, which could make it a good time to sell and make a profit.
It is also on Barron’s list of stocks that are hard to short, and analysts have only given it a “hold” rating.
Groupe T. Rowe Price (TROW)
As of January 6, 2023, the price is $112.29
As of January 6, 2023, the market cap was $25.093 billion.
More of the 15 analysts who follow T. Rowe Price Group say to sell the stocks in February than to even hold on to it, but the “average” rating is to hold.
The stock has been hit hard by a number of things, such as inflation, rising interest rates, a bear market in stocks in February, and poor performance by funds. Barron’s analysis shows that it is still hard to sell shares short, which is a sign of a hard road ahead.
As of January 6, 2023, the price is $16.46
As of January 6, 2023, the market cap was $5.01 billion.
GameStop is one of the few publicly traded companies that all analysts agree deserves a “underperform” rating, which is one step below “hold,” which often means “sell.”
In the last two years, GameStop has been all over the news as the most famous meme stock. There is even a Netflix documentary about its rise and fall.
But after GameStop’s stock jumped more than 400% in a week at the beginning of January 2021, it has become harder and harder to sell short, and the stocks has dropped.
Except for a few speculative spikes that happen when online message boards get busy, the stock has been going down for two years now, down about 48% in the last year and 11% in 2023 alone.
A stock is a type of security that gives buyers a piece of a company. This piece is called a “share.” If the company does well and the stock price goes up, buyers can make money by selling their shares of stock. On the other hand, if the company does badly, the price of its stocks will go down, and people who bought them will lose money on their investments.
Common stock and preferred stock are the two main types of stock. Most of the time, when people talk about stocks, they mean common stock. If you buy common stock, you own a piece of the company and get dividends based on the company’s profits. The main difference between preferred stock and common stock is that preferred stockholders usually get a guaranteed, fixed dividend, while common stockholders get dividends based on how much money the company makes.