CDLX - Avoid These 3 Sell-Rated Stocks at All Costs

The POWR Ratings are updated on a daily basis where some stocks are upgraded, and others are downgraded. We tell investors to focus on stocks with an overall grade of A or B as they offer the highest potential for gains. But just as important, investors should avoid stocks with an overall grade of D or F. 

So, if you own a stock that was recently downgraded to a D or F, it may be time to sell. Even if you don't hold a stock with a D or F grade, you still need to make sure to avoid those that were recently downgraded. With the market showing higher volatility over the past week, it's even more important now. 

Below, I shine the spotlight on three recent POWR Ratings downgrades you should avoid: Cardlytics (CDLX), CorMedix (CRMD), and fuboTV (FUBO).

Cardlytics (CDLX)

CDLX develops a smart platform for purchases. Data pertaining to everything from the payment of bills to credit and debit for web-based and in-store transactions is included in the platform. In short, CDLX makes it easier for marketers to pinpoint, connect with, and influence potential buyers. CDLX also facilitates the measurement of the impact of marketing campaigns.

CDLX has an overall grade of F, which translates into a Strong Sell rating in our POWR Ratings system. The company also has grades of F in the Sentiment and Value components, plus grades of D in the Quality and Stability components. Click here to learn more about how CDLX fares in the Momentum and Growth components.

Of the 103 stocks in the Financial Services (Enterprise) industry, CDLX is ranked 102nd. There are some good stocks in this industry, which you can find by clicking here. CDLX has lost 36% so far a year-to-date price. Check out analyst ratings for CDLX, and you will find they are not exactly hyper-bullish. Out of the half dozen analysts to have provided CLDX recommendations, zero consider the stock a Strong Buy.

CorMedix (CRMD)

CRMD is a biopharma company that develops and commercializes therapeutic products that treat and prevent inflammatory and infectious diseases. In particular, CRMD's primary focus is on perfecting its top product, Defencath, an antifungal solution that prevents potentially deadly and costly bloodstream infections caused by central venous catheter use.

CRMD has an overall grade of F, which is a Strong Sell rating in the POWR Ratings system. It has a grade of F in the Quality component and a grade of D in the Value, Sentiment, and Momentum components. If you are curious about how CRMD grades out in the Growth and Stability components of the POWR Ratings, you can find out by clicking here.

Of the 493 publicly traded companies in the Biotech industry, CRMD is ranked toward the bottom at 485th. Though, you can find top stocks in this industry by clicking here. CRMD is particularly volatile when the market fluctuates. Its beta is an eye-popping 2.32, meaning this stock is not for the faint of heart.

CRMD's latest quarterly loss of 20 cents per share is certainly concerning. Its recent earnings report reveals the company missed earnings estimates by about 11%. Add in the fact that the FDA recently refused to approve CRMD's Defencath drug, and investors have even more reason to jump ship.

fuboTV (FUBO)

FUBO has not become nearly as popular as its founders or investors envisioned. Though streaming services have become quite popular, FUBO is underwhelming. Based in New York, FUBO provides live streaming entertainment and news.

FUBO has an overall grade of F, translating into a Strong Sell rating. It has F grades in the Quality, Sentiment, and Stability components and a grade of D in the Value component. Click here to learn more about how FUBO grades out in the rest of the POWR Ratings components.

Of the 15 publicly traded companies in the Entertainment - Sports & Theme Parks industry, FUBO is ranked dead last. Investors can find top stocks in this industry by clicking here. So far for the year, FUBO has lost 27%. 

The bottom line is that with such a variety of streaming services available to consumers, FUBO doesn't stand out, especially because it doesn't offer any particularly attractive streaming content. All in all, FUBO's subscriber total is a lowly 590,430. FUBO will likely continue to struggle moving forward as even more players enter the streaming space.

CDLX shares were trading at $94.64 per share on Tuesday morning, up $3.91 (+4.31%). Year-to-date, CDLX has declined -33.71%, versus a 11.40% 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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