Wednesday, July 24, 2024

Twitter and 7 Other Large-Cap Tech Stocks That Will Kill Your Portfolio in 2016


Editor's Pick: Originally Published Tuesday, Dec. 22.

The year is quickly coming to a close, which means it's time to clear your investment portfolio of underperforming stocks.

That means selling these eight technology stocks now. Sounds counterintuitive given that that the tech sector has widely outperformed the S&P 500 this year, up 9.5% vs. 0.15%, respectively, but the large-cap stocks below are all rated "sell" by TheStreet Ratings, TheStreet's proprietary ratings tool. So if you're holding onto these stocks, get out of them now.

TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equity market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a buy yielded a 16.56% return in 2014, beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a buy yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

Here's the list of tech stocks to sell. When you're done check out the tech stocks to buy for 2016.


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Author: Red

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