The stock market witnessed a rout on Friday after Federal Reserve Chairman Jerome Powell said in his Jackson Hole speech that the central bank will keep raising interest rates until inflation is controlled. Also, he warned that the interest rate hikes would cause “some pain” to the economy.
“Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy,” Powell said.
Additionally, the deepening of the yield curve inversion is raising recession concerns. And the geo-political tensions brewing between China and Taiwan could worsen the investment landscape.
Given this backdrop, fundamentally weak stocks Blink Charging Co. (BLNK), Riot Blockchain, Inc. (RIOT), and Advent Technologies Holdings, Inc. (ADN) might be best avoided now.
Blink Charging Co. (BLNK)
BLNK owns, operates, and provides electric vehicle (EV) charging equipment and networked EV charging services in the United States and internationally.
For the fiscal second quarter of 2022, BLNK’s loss from operations increased 77.9% year-over-year to $21.96 million. Net loss increased 68.1% from the prior-year quarter to $22.62 million, while the net loss per share increased 62.5% from the same period the prior year to $0.52.
The consensus EPS estimate of negative $0.48 for the fiscal first quarter ended September 2022 indicates a 33.8% year-over-year decline. Also, the consensus EPS estimate of negative $1.83 indicates a 38.3% decrease year-over-year in the ongoing fiscal year. BLNK missed the EPS estimates in three of the trailing four quarters.
The stock has declined 44% over the past nine months to close the last trading session at $21.38.
BLNK’s POWR Ratings reflect this bleak outlook. The stock has an overall F rating, equating to a Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
BLNK also has a Value, Sentiment, Stability, and Quality grade of F and a Growth grade of D. In the 91-stock Industrial - Equipment industry, it is ranked last.
Click here to see the additional POWR Ratings for BLNK (Momentum).
Riot Blockchain, Inc. (RIOT)
RIOT focuses on bitcoin mining operations in North America. The company operates through Bitcoin Mining; Data Center Hosting; and Electrical Products and Engineering segments.
For the fiscal quarter ended June 30, 2022, RIOT’s net income decreased 1,994.5% year-over-year to a negative $366.33 million. EBITDA decreased 1,325.3% from the prior-year period to a negative $351.97 million. The company’s adjusted EPS came in at negative $0.50, down 1,766.7% from the prior-year period.
Street revenue estimate of $63.72 million for the fiscal third quarter ended September 2022 reflects a 1.7% year-over-year decrease. RIOT also missed the consensus EPS estimates in three of the trailing four quarters.
The stock has slumped 81.3% over the past year to close the last trading session at $6.79.
It’s no surprise that RIOT has an overall F rating, which translates to Strong Sell in our POWR Rating system.
RIOT also has an F grade for Stability and Quality and a D in Value and Sentiment. It is ranked #80 out of the 82 stocks in the Technology - Services industry.
Click here to see the additional POWR Ratings for Growth and Momentum for RIOT.
Advent Technologies Holdings, Inc. (ADN)
ADN, an advanced materials and technology development company, operates in the fuel cell and hydrogen technology markets. It develops, manufactures, and assembles fuel cell systems and critical components that determine the performance of hydrogen fuel cells and other energy systems.
ADN’s gross profit decreased 113.5% year-over-year to negative $45 million in the second quarter of 2022. Operating loss increased 64.3% from the prior year to a negative $11.15 million, while the net loss increased 254.7% year-over-year to $11.15 million. Also, the company’s net loss per share stood at $0.22 in the same period.
Analysts expect ADN’s EPS to come in at a negative $0.20 for the quarter ending September 2022 and a negative $0.21 for the quarter ending December 2022.
ADN’s shares have declined 63.1% over the past year to close the last trading session at $2.72.
ADN’s poor prospects are reflected in its POWR Ratings. The stock has an overall F rating, equating to a Strong Sell in our proprietary rating system.
ADN also has a Quality and Stability grade of F and a Value and Growth grade of D. It is ranked #80 in the Industrial - Equipment industry.
Click here to see the additional POWR Ratings for Momentum and Sentiment for ADN.
BLNK shares were unchanged in after-hours trading Monday. Year-to-date, BLNK has declined -21.24%, versus a -14.60% rise in the benchmark S&P 500 index during the same period.
About the Author: Komal Bhattar
Komal's passion for the stock market and financial analysis led her to pursue investment research as a career. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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