Quantcast
3 Recently DOWNGRADED Tech Stocks to Avoid

3 Recently DOWNGRADED Tech Stocks to Avoid

Posted On July 29, 2020 12:20 am
By:

Technology is attractive to investors, because there is potential for fast growth and big margins.  And as a sector, technology it’s one of the strongest areas of the market, as the Nasdaq is 6% above its pre-coronavirus highs and 57% above its March lows.

Yet, even though the bull market in technology is creating a positive tailwind for the sector, some tech companies are struggling in the current economic environment.

Our POWR Ratings can help you identify which tech companies are starting to stumble. Intel (INTC), Viomi Technology (VIOT), and MicroVision (MVIS) are three stocks recently downgraded by the POWR Ratings service.

Intel Corporation (INTC)

Even though INTC announced a positive second-quarter earnings report in many ways, the company seems to be heading for trouble. The primary concern is the six-month delay in the production of the much-awaited 7-nm chip. It was expected to be released around the end of 2021 but the release has now been shifted to 2022.

INTC ’s stock price has declined more than 18% since the announcement of the second-quarter results and is currently trading at $49.57. Before the decline, INTC had been consistently trading around the $60 mark after recovering from the mid-March low of $43.6, caused by the overall stock market crash.        

INTC’s overall rating has recently been downgraded from a “Buy” to “Neutral” in our POWR Ratings system. It also has a “C” in Trade Grade and Buy & Hold Grade and “D” in Peer Grade. The stock is also ranked #54 out of 86 stocks in the Semiconductor & Wireless Chip industry.

Viomi Technology Co., Ltd (VIOT)

VIOT’s net income in the first quarter of 2020 fell to RMB 17.8 million from RMB 41.3 million a year ago. The cost of revenues for the company increased by 27.7% from the same period last year.

The number of offline stores that the company operates also fell to 1500 from 1700 at the end of 2019.

The stock steadily declined over the last week. VIOT’s stock has lost approximately 11% in value since July 21st and is currently trading at $6.22. After the stock market crash in mid-March, the stock witnessed a rallying period and touched a high point of $7.28 before starting to decline.

VIOT is expected to deliver an EPS of…

Continue reading at STOCKNEWS.com

 

 

About author

Leave a reply

Your email address will not be published. Required fields are marked *