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The Zacks Analyst Blog Highlights: Teligent, BHP Billiton, LinkedIn, Zayo Group Holdings and Opko Health

For Immediate Release

Chicago, IL – April 25, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Teligent, Inc. (TLGT), BHP Billiton Limited (BHP), LinkedIn Corporation (LNKD), Zayo Group Holdings, Inc. (ZAYO) and Opko Health, Inc. (OPK).

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Here are highlights from Friday’s Analyst Blog:

5 Toxic Stocks to Get Rid of Now

Investment in a stock with valuation above its true potential is bound to translate to loss over time. Overvaluation implies that the current price of the stock is not justified by its business conditions and therefore, a decline in price is inevitable.

A stock becomes overpriced due to irrational exuberance associated with it or some serious weakness in the company fundamentals. As a result, owning these stocks could lead to erosion of wealth for an investor.

Investors who can identify toxic stocks can actually gain even in a bear market by resorting to an investing technique called short selling.

In short selling, one can sell an un-owned stock and then purchase it when the price falls. Naturally, short selling has excelled in bear markets, while it typically loses money in bull markets.

So, just like selecting good stocks, identifying toxic stocks is also crucial in shielding one’s portfolio from massive losses or making profit by short selling them.

Screening Criteria

Here, is a winning strategy that will help you identify the over-hyped toxic stocks:

Most recent Debt/Equity Ratio greater than the median industry average: High debt/equity ratio implies high leverage. And high leverage indicates a huge level of repayment that the company has to make in connection with the debt amount.

P/E using 12-month forward EPS estimate greater than 50: A very high forward P/E implies that a stock is highly overvalued.

% Change in F (1) and F (2) Estimate (12 Weeks) less than -10: NegativeEPS estimate revision for this fiscal year and next fiscal year during the past 12 weeks point to analysts’ pessimism.

Zacks Rank more than or equal to #3: We have not considered the Buy-rated stocks that generally outperform the market.

Here are five of the 17 stocks that made it through the screen:

Teligent, Inc. (TLGT)

BHP Billiton Limited (BHP)

LinkedIn Corporation (LNKD)

Zayo Group Holdings, Inc. (ZAYO)

Opko Health, Inc. (OPK)

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
TELIGENT INC (TLGT): Free Stock Analysis Report
 
BHP BILLITN LTD (BHP): Free Stock Analysis Report
 
LINKEDIN CORP-A (LNKD): Free Stock Analysis Report
 
ZAYO GROUP HLDG (ZAYO): Free Stock Analysis Report
 
OPKO HEALTH INC (OPK): Free Stock Analysis Report
 
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