Three stocks to avoid

These stocks are all in the red this year yet continue to trade above our estimates of their fair value.

Susan Dziubinski 28 December, 2017 | 6:00PM
Facebook Twitter LinkedIn

In an article two weeks ago I put the spotlight on stocks that have returned twice as much as the S&P 500 this year, yet still looked undervalued according to Morningstar's estimates of their fair values. These stocks have more room to run, in our opinion.

This week, we're taking a look at stocks through the opposite lens, focusing on those that have underperformed the market in 2017, yet still look overpriced according to Morningstar's estimates of their fair values. In our opinion, these would be stocks to avoid.

Specifically, I screened for stocks that have lost money this year and that are trading in 1- or 2-star range, which suggests they're overvalued. I then narrowed the search further to companies with wide or narrow economic moat ratings. Here is a detailed look at three of the names that made the list.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Cisco Systems Inc55.11 USD-1.04Rating
Citrix Systems Inc99.89 USD-0.31Rating
Conagra Brands Inc33.34 USD0.00Rating
Core Laboratories NV28.23 USD-0.32Rating
F5 Networks Inc208.25 USD-0.68Rating
Radware Ltd35.65 USD0.37

About Author

Susan Dziubinski

Susan Dziubinski  Susan Dziubinski is director of content for

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy