Stocks to Avoid
Let’s take a look at the next week: Amazon.com (NASDAQ:AMZN), AbbVie (NYSE:ABBV), and Overstock.com (NASDAQ:OSTK) are stocks investors should likely avoid this week, in my opinion. Let’s go through my first worries about all three stocks investments.
1. Amazon Stock
I never imagined the day would come when the powerful Amazon stock (NASDAQ:AMZN) would make the cut on this list, but here we are. Amazon stock has struggled ahead of its earnings release on Thursday afternoon. Investors were taken aback by the internet commerce leader’s consecutive quarterly losses. For five straight quarters, revenue growth has slowed dramatically. With this week’s report, sales should rebound, but margins are likely to remain tight.
2. AbbVie Stock
Investors see prosperous pharmaceutical businesses as all-weather performers, and AbbVie combines robust profitability with a sizable 3.8% dividend. It will announce quarterly results at the end of the week, and analysts anticipate solid growth on both sides of the income statement.
AbbVie Stock (NYSE:ABBV) may seem to be an unusual name on our list but consider the facts. The short-term picture is uncertain. Its best-selling medication, Humira, will go off patent next year, and Wall Street analysts predict a 7% drop in sales – with an even greater drop on the bottom line. There is also no doubt that the United States government is working hard to keep prescription costs low.
AbbVie does have several new treatments that may soften the blow of Humira’s impending competition from the generics market. But it will not suffice. And if the corporation provides a sunny prognosis on Friday morning, it will be doing its stockholders a disservice.
3. Overstock.com
If I’m going to include Amazon on this list, I may as well include another online shop that’s doing even worse. Overstock.com stock (NASDAQ:OSTK) is in big trouble. Amazon’s sales may be decreasing, but the company has seen four straight quarters of year-over-year decreases.
A prospective recession would seem to be a death knell for a firm that sells clearance, distressed, and overstock things at rock-bottom costs, but that hasn’t been the case. Overstock shares and earnings expectations are sliding, just like the stuff it sells. This week, it joins Amazon and AbbVie in disclosing new financials, and this one might be the scariest of the three.
Some of these investments will face difficulties. If you’re seeking safe stocks, you won’t find them this week on Amazon.com, AbbVie, or Overstock.com.
Featured Image- Unsplash @ Piotr Cichosz
Author Okoro Chinedu 
