These 5 Stocks Could Damage Your Portfolio This Week

Each week Forcerank runs a variety of games covering different industries. What we have found, is that the lowest ranked companies in their respective games deliver the biggest negative price movement and vice versa for those in the top position. This week we look at a list of companies that are consistently at the bottom or trending lower in their respective games. 

Photo Credit: Scott Lewis

Amazon (AMZN) | Hardware: It’s difficult to imagine Amazon on a list of losers regardless of what the situation might be but this week Forcerank users dropped the retailers avg ranking from 1.7 to 4.1. Amazon still ranks highly in the hardware contest but such a large drop in average ranking signals near term volatility. At $760 per share some investors have grown concerned that Amazon can’t sustain trading at 175 times TTM earnings. The stock also took a beating recently following Trump’s shocking election victory. Amazon’s CEO, Jeff Bezos, and President Elect Trump haven’t seen eye to eye but the main concern is how Trump approaches trade policy. Any restrictive tariffs or embargoes will put pressure on Amazon’s operations around the world. From a technical standpoint the recent losing streak spurred a bearish crossover in the MACD along with the 50 day moving average eclipsing the short term 20 day average.

Chipotle Mexican Grill (CMG) | Restaurants: Unlike Amazon, Chipotle has a home on the list of weekly losers. The burrito chain continues to suffer from its many health outbreaks that started over a year ago. Meanwhile, the fast casual space has become increasingly crowded with newcomers like Shake Shack and lesser known private companies. The stock should continue to see greater downside risk if it can’t correct underlying business fundamentals. A technical breakdown  also points to weak price action including a MACD on the verge of a bearish crossover and relatively soft volume growth.

Skyworks Solutions (SWKS) | Semiconductors: Shares of the chipmaker have soared in recent months following the early success of the new iPhone 7. Now that consumers and the market is less enamored with the phone it’s time for Skyworks to return its gains. A bearish crossover of the 20 day average along with the MACD inching closer to negative territory and its own bearish crossover intimates a downturn on the horizon. Forcerank users consistently rank Skyworks in the middle of the semiconductors contest despite some glaring weaknesses in its charts.