We are officially halfway through September!
As we’ve talked about, the first half of September is historically the weakest, as many Wall Streeters and Europeans are slowly returning from their extended summer holidays. But I expect things to start picking back up from here…
Now, in Friday’s Market 360, we reviewed the latest inflation reports – the Consumer Price Index (CPI) and Producers Price Index (PPI) – as well as the most recent retail sales report. Both the CPI and PPI rose as inflation accelerated again in August. And the retail sales report was boosted by the recent increase in prices at the pump.
Of course, the other big news that caught Wall Street’s attention last week was the European Central Bank’s (ECB) decision to raise key interest rates again. The ECB signaled that the fight against inflation is more important than stimulating economic growth.
This leads us to today where all eyes will be on the Federal Reserve as they hold their September Federal Open Market Committee (FOMC) meeting. Wall Street is on pins and needles waiting to see if Fed will raise interest rates again.
There are some concerns that the Fed could follow in the European Central Bank’s (ECB) footsteps and raise rates again, especially in light of the hotter-than-expected CPI report last week. But most – me included – anticipate that the Fed will stand pat, keeping the Fed funds rate between 5.25% and 5.50%.
Regardless, the fact is a lot of the distractions that have been weighing on the stock market in early September are starting to disappear. But our best defense for the current market environment remains a strong offense of fundamentally superior stocks.
So, in today’s Market 360, I’ll reveal 10 stocks that I do not consider fundamentally superior stocks and could do my harm than good in your portfolio. Then I’ll share a tool that can help you build your strong offense.
This Week’s Ratings Changes
After taking a close look at the latest institutional buying pressure and each company’s financial health, I decided to revise my Portfolio Grader for 98 big blue chips. Of these 98 stocks, 26 were downgraded from a B-rating (Buy) to a C-rating (Hold), and 12 were downgraded from a C-rating to a D-rating (Sell).
I’ve listed the first 10 stocks to sell below, but you can find the full list – including the stocks’ Fundamental and Quantitative Grades – here.
Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
|ALNY||Alnylam Pharmaceuticals, Inc||D|
|BMY||Bristol-Myers Squibb Company||D|
|CHK||Chesapeake Energy Corporation||D|
|GPN||Global Payments Inc.||D|
|HBAN||Huntington Bancshares Incorporated||D|
|NICE||NICE Ltd. Sponsored ADR||D|
|SWKS||Skyworks Solutions, Inc.||D|
Clearly, there are better stocks out there right now – ones with strong earnings momentum, sales growth, positive analyst revisions and other key factors. In other words, the fundamentally superior stocks.
These stocks help you build a strong offense for the choppy market waters. And these are the type of stocks I recommend to my Growth Investor subscribers.
If you become a Growth Investor member today, you’ll have access to my two Buy Lists: High-Growth Investments and Elite Dividend Payers. I also include a Top Stocks list, which is a select list of stocks from my Buy Lists that are backed by persistent institutional buying pressure and stunning fundamentals.
To gain access to my Buy Lists now, join me at Growth Investor now. You’ll also get immediate access to all my Monthly Issues, Weekly Updates, Special Market Podcasts and Special Reports.
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