Sell these stocks now, proven algorithm says

Cryogenic systems maker, telehealth provider headline this week’s list of "F" rated Strong Sells

Here are this week’s downgrades to Strong Sell as determined by the POWR Ratings algorithm.

• Cryoport (CYRX) – a provider of temperature-controlled supply chain solutions for the life sciences industry that touts itself as "the world’s largest manufacturer of cryogenic systems and one of the largest life science focused specialty couriers"
• Teladoc Health (TDOC) – a direct-to-consumer telehealth provider
• Algonquin Power & Utilities (AQN) – a diversified international generation, transmission, and distribution utility with over $17B of total assets committed to providing energy and water solutions through its two business groups, the Regulated Services Group and the Renewable Energy Group
• Enviva (EVA) – a producer of industrial wood pellets that owns and operates ten plants with a combined production capacity of approximately 6.2 million metric tons per year
• Paysafe (PSFE) – operator of a specialized payments platform geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments
• Guardant Health (GH) – a precision oncology company
• Aurora Innovation (AUR) – a developer of a self-driving system and driver-as-a-service products for trucking and ride-hailing
• Uranium Energy (UEC) – a North American focused uranium company, advancing uranium mining projects in the United States and Canada

Learn more about the POWR Ratings

Recent news on these stocks:

January 19

Enviva announced the appointments of a Chief Commercial Officer, Chief Sustainability Officer, Chief Administrative and People Officer, and General Counsel. Enviva has appointed John-Paul Taylor to Chief Commercial Officer. Taylor joined Enviva as Vice President, Optimization and Origination in February 2014 and most recently served as Senior Vice President of Sales and Fulfillment. Enviva has appointed Brandi Colander as Chief Sustainability Officer to maintain and enhance its role as an industry leader in sustainability and environmental stewardship. This function operates as an integral strategic partner throughout the Enviva enterprise. Additionally, Enviva has announced the appointment of Roxanne Klein to Chief Administrative and People Officer. In her new role, she will assume responsibility for a variety of corporate and administrative functions in addition to overseeing the human resources function. Finally, Jason Paral has been appointed General Counsel and will maintain his role as Secretary. Throughout his tenure at Enviva, Paral has held positions of increasing responsibility and closely supported the other members of the executive team and board of directors

January 18

In a regulatory filing, Teladoc Health disclosed that on January 18 the company announced a restructuring plan intended to reduce operating costs. In addition, the company underwent certain other cost-saving actions taken during the latter part of the fourth quarter of 2022. The combination of these actions results in a reduction of the company’s workforce of approximately 6%, and office space reductions within certain markets. "The fourth quarter actions did not have a material impact on 2022 financial operating results. Decisions regarding the elimination of positions are subject to local law and consultation requirements in certain countries, as well as the company’s business needs. In conjunction with earlier cost-saving actions, the company incurred approximately $4.4M in pre-tax charges in the fourth quarter of 2022, consisting of approximately $2M in costs related to employee transition, severance payments, employee benefits, and related costs, and approximately $2.4M in exit costs associated with the office space reductions. In connection with the restructuring plan, the company expects to incur approximately $17M in pre-tax charges in 2023, consisting of approximately $9M substantially related to employee transition, severance payments, employee benefits, and related costs expected to be realized in the first quarter of 2023, and approximately $8M of exit costs associated with office space reductions expected to occur by the second quarter of 2023. Of the aggregate amount of pre-tax charges that the company estimates it will incur in 2023, approximately $10M are expected to result in future cash expenditures related to the workforce reductions. In addition to these charges, the company expects a reduction in stock-based compensation of approximately $6M in the first quarter of 2023 associated with forfeited stock awards," the filing stated.

Cryoport (CYRX) announced a new strategic partnership with Syneos Health (SYNH). The partnership will support the global advancement of cell and gene therapies, providing the industry’s first fully integrated biopharmaceutical and supply chain solution. The new partnership couples the full suite of clinical development services offered by Syneos Health with IntegriCell, Cryoport’s platform providing standardized apheresis collection through BioLife Cellular Therapy Services, part of Takeda (TAK), cryopreservation services, risk mitigation services, logistics support, and secondary packaging.

Paysafe announced its expansion into the new Ohio online sports-betting market after entering the Maryland iGaming space in Q4 2022. Paysafe is now powering play safely for a range of sportsbooks in the Midwestern state by providing their players with a comprehensive suite of payment options, including credit card and debit card deposits, Paysafe’s Skrill digital wallet for both deposits and payouts, and other solutions. By kicking-off 2023 with a move into Ohio – whose sports-betting market is expected to generate as much as $900M in gross annual gaming revenue when mature, according to PlayOhio – Paysafe now supports iGaming operators with payments in 25 different U.S. states or jurisdictions.

January 17

RBC Capital analyst Shelby Tucker upgraded Atlantica Sustainable Infrastructure (AY) to Outperform from Sector Perform with an unchanged $34 price target. The analyst believes that the current share price is "attractive", reflecting the stock’s 2023 CAFD yield of 8.0% and supporting the 6.7% dividend yield. A potential divestment of Algonquin’s (AQN) stake could also be a catalyst for the shares, Tucker tells investors in a research note.

About "Sell these stocks now"

Each week, The Fly will announce the newest downgrades to Strong Sell in StockNews.com’s POWR Ratings algorithmic model.

This Fly exclusive recap identifies stocks with over a $1B market capitalization that have been downgraded this week to the Strong Sell, or "F," rating in the service’s proprietary model that analyzes 118 different factors, each of which contribute a little to the stock’s predicted likelihood of underperformance. A bell curve distribution of StockNews.com’s ratings shows that only the top 5% of the over 5,000 stocks rated by the system are assigned a "Strong Buy," or "A," rating while the bottom 5% are assigned a Strong Sell. The F-rated stocks would have tumbled an average of 18.98% a year since 1999, according to StockNews.com.

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