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Five stocks to sell now before they fall

Activision Blizzard

Video game maker Activision Blizzard (ATVI) recently traded up to a new record high, despite a disappointing fourth-quarter earnings report in February. The company missed estimates on both the top and bottom line, which initially led to a dip in the stock, but shares have rebounded and hit a new all-time high on March 7. With the stock’s current price, the valuation has become a concern. The stock now has a P/E of 37.6, which is a bit high for the stock, especially considering that analysts forecast earnings to fall by 11.4% this year. So far, traders have been willing to overlook the expected earnings decline, but considering the declining earnings, and the stock’s current valuation, shares are priced for perfection, and any signs of weakness could result in a major sell off in the stock.

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Chart courtesy of www.stockcharts.com

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.