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5 Stocks GuruFocus Members Are Shunning for Christmas

The most popular stocks in the 'Not Interested' basket

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Dec 06, 2021
Summary
  • Dow starts week with a bang as investors continue monitoring new Omicron variant.
  • Tesla skids as SEC probes the company regarding the company’s solar panel defects.
  • Tesla remains the most-voted stock in the “Not Interested” virtual basket.
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As of Monday, five stocks that GuruFocus members are shunning over the Christmas holiday are Tesla Inc. (

TSLA, Financial), Amazon.com Inc. (AMZN, Financial), H&R Block Inc. (HRB, Financial), Wells Fargo & Co. Inc. (WFC, Financial) and AbbVie Inc. (ABBV, Financial).

Dow surges to begin the week as investors shrug off Omicron variant concerns

The Dow Jones Industrial Average closed at 35,227.03, up 646.95 points from Friday’s close of 34,580.08.

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Stocks like Dow component Boeing Co. (

BA, Financial), airlines and other travel stocks soared on reports that the new Omicron Covid-19 variant may cause milder symptoms than strains like the Delta variant. White House Chief Medical Advisor Dr. Anthony Fauci said that while it is too early to make definitive statements, preliminary data shows that the Omicron cases are not as severe.

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Tesla bucks overall market trend on SEC probe

Despite the broad market indexes climbing approximately 1%, shares of Tesla Inc. (

TSLA, Financial) tumbled to an intraday low of $950.50 in early market trading on news that the Securities and Exchange Commission launched a probe into the Palo Alto, California-based electric vehicle giant’s failure to notify shareholders and the public of risks associated with the company’s solar panel systems. Reuters mentioned whistleblower comments stemming from more than two years ago.

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Despite shares of Tesla closing approximately 18% below its 52-week high, the stock is significantly overvalued based on Monday’s price-to-GF Value ratio of 3.85.

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GuruFocus’ “Virtual Baskets” feature allows its members to vote a stock into several baskets: buying, considering, researching and not interested. Berkshire Hathaway Inc. (

BRK.A, Financial)(BRK.B) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) said that the virtual baskets allow users to invest only in one’s circle of competence.

As of Monday, Tesla has 48 votes in the “Not Interested” basket, the most-voted stock dismissed by GuruFocus members.

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GuruFocus ranks Tesla’s financial strength 6 out of 10 on the back of a high Piotroski F-score of 7 and a strong Altman Z-score of 21 despite interest coverage and debt ratios underperforming more than half of global competitors.

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Gurus with large holdings in Tesla include

Baillie Gifford (Trades, Portfolio), Ron Baron (Trades, Portfolio)’s Baron Funds and PRIMECAP Management (Trades, Portfolio).

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Amazon.com

Twelve GuruFocus members dismissed Amazon.com (

AMZN, Financial) as a potential investment.

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Shares of Amazon.com traded around $3,427.37, showing the stock is fairly valued based on Monday’s price-to-GF Value ratio of 0.94.

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GuruFocus ranks the Seattle-based e-commerce giant’s profitability 8 out of 10 on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 7 and profit margins and returns that outperform more than 65% of global competitors.

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H&R Block

Twelve GuruFocus members dismissed H&R Block (

HRB, Financial) as a potential investment.

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Shares of H&R Block traded around $24.12, showing the stock is fairly valued based on Monday’s price-to-GF value ratio of approximately 1.

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GuruFocus ranks the Kansas City, Missouri-based tax return service company’s profitability 7 out of 10 on several positive investing signs, which include profit margins and returns that are outperforming over 70% of global competitors.

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Wells Fargo

Twelve GuruFocus members dismissed Wells Fargo (

WFC, Financial) as a potential investment.

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Shares of Wells Fargo traded around $48.81, showing the stock is fairly valued based on Monday’s price-to-GF Value ratio of 1.05.

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GuruFocus ranks the San Francisco-based bank’s financial strength 3 out of 10 on the back of debt ratios underperforming more than 62% of global competitors.

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AbbVie

Eleven GuruFocus members dismissed AbbVie (

ABBV, Financial) as a potential investment.

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Shares of AbbVie traded around $121.35, showing the stock is fairly valued based on Monday’s price-to-GF Value ratio of 0.98.

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GuruFocus ranks the Chicago-based drug manufacturer’s profitability 8 out of 10 on the back of profit margins and returns outperforming more than 77% of global competitors.

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See also

While Apple Inc. (

AAPL, Financial) and Intel Corp. (INTC, Financial) have the second and third-largest votes among stocks shunned by GuruFocus members, the two stocks have significantly more votes in the “Buying” and “Considering” baskets.

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Also check out:

Disclosures

I am/we are Long AAPL and INTC.
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
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