1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (1701) 

Analysts Recommend Holding These 2 Falling Knives

Gulfport Energy, Resolute Forest Products have a low financial burden

September 13, 2019 | About:

Falling knives are companies whose stocks have fallen more than 59% over the last 52 weeks. Investments in these securities are based on expectations of impressive rewards following a rebound in the share price.

Since these types of declines could be a sign of financial distress, investors are typically cautious about these stocks as their portfolios could be damaged if the company fails.

However, if falling knives have a moderate to low financial burden, the risk of loss is lower.

In addition to a moderate to low debt-to-equity ratio, the following securities have a recommendation rating of hold, which means analysts suggest investors maintain their positions in these companies despite the sharp drop in the share price.

Here are some results from my search.

Shares of Gulfport Energy Corp. (NASDAQ:GPOR) closed at $2.87 on Thursday for a market capitalization of $457.47 million. The stock declined 73.2% over the last 12 months through Sept. 12.

The Oklahoma-based oil and gas producer has a debt-equity ratio of 0.63 compared to the industry median of 0.48.

GuruFocus assigned a moderate financial strength rating of 4.5 out of 10 and a very positive profitability and growth rating of 7 out of 10.

The closing share price on Thursday was below the 200-, 100- and 50-day simple moving average lines. The 52-week range was $2.28 to $11.94.

The price-sales ratio is 0.39 versus the industry median of 1.58 and the enterprise value-Ebitda ratio is 2.81 compared to the industry median of 4.98.

The 14-day relative strength index of 47 suggests the stock is neither overbought not oversold.

Wall Street issued a hold recommendation rating with an average target price of $6.25.

Shares of Resolute Forest Products Inc. (NYSE:RFP) closed at $5.1 per share on Thursday for a market capitalization of $455.4 million. The stock fell 65.54% over the past 12 months through Sept. 12.

The Canadian producer of pulp, paper, tissue and wood products has a low debt-equity ratio of 0.31 compared to the industry median of 0.57.

GuruFocus assigned a positive rating of 5.6 out of 10 for the company's financial strength and a 5 out of 10 rating for its profitability and growth.

The closing price on Thursday was below the 200-, 100- and 50-day simple moving average lines. The 52-week range was $4.17 to $15.38.

The price-book ratio is 0.3 versus the industry median of 0.92 and the price-sales ratio is 0.13 versus the industry median of 0.56.

The 14-day relative strength index of 57 suggests the stock is neither overbought nor oversold.

Wall Street issued a hold recommendation rating with an average target price of $7.75.

Disclosure: I have no positions in any securities mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)