When stock markets trade at all-time highs, investors should consider selling the stocks testing fresh new lows.
Walgreens (WBA), Unity Software (U), Goodyear Tire (GT), and Newell Brands (NWL) are among the stocks to be wary of.
High theft rates, called shrinkage on financial reports, are a plague to the drugstore sector. While CVS Health (CVS) stock bottomed at $52.77 to close at $71.03, Walgreens risks re-testing its $14.62 low.
Unity, which sells a gaming platform, changed its revenue-sharing model with developers. This angered the user base, sending U stock to fresh new lows.
Goodyear Tire, which supplies tires to the auto industry, will underperform. Vehicle sales, especially in the EV market, will weaken further. Consumers canceled plans to spend $60,000 and up to $120,000 on luxury vehicles.
Newell Brands recently declared a 7-cent dividend, which yields 3.8%. Sellers are still dumping the stock. Last quarter (Q1), the firm posted an 8.4% drop in revenue Y/Y to $1.65 billion.
Kenvue (KVUE) is among several companies that are a spin-off from a bigger firm. Shares hover near a 52-week low. The stock has weak growth and the dividend, which yields under 2.0%, is too low.
In the tech sector, companies missing out on the AI boom will continue to underperform. Watch out for Intel (INTC) soon re-testing its 52-week low of $29.73.
