The stock market has been under tremendous pressure lately, with the S&P 500 declining 5.8% last week. The Dow Jones Industrial Average fell below 30,000 for the first time since January 2021 this past week.
With inflation soaring to 41-year highs, the Fed raised interest rates by 75 basis points last week and signaled continued tightening ahead. Fed Chair Jerome Powell said another hike of 50 or 75 basis points at the next meeting in July is likely. This has triggered potential recession fears, leading to a sell-off in equities.
Given this backdrop, we think fundamentally weak stocks Boxed, Inc. (BOXD), KalVista Pharmaceuticals, Inc. (KALV), and NeoGenomics, Inc. (NEO) are best avoided now. Our proprietary POWR Ratings system downgraded these stocks from ‘Sell’ to ‘Strong Sell’ last week.
Boxed, Inc. (BOXD)
BOXD is an e-commerce retailer and an e-commerce enabler. It provides branded and private-labeled bulk pantry consumables to businesses and household customers. It enables e-commerce through its Software & Services business, which offers customers in need of an enterprise-level e-commerce platform access to its end-to-end technology.
In the fiscal first quarter ended March 31, 2022, BOXD’s loss from operations rose 118.3% year-over-year to $29.01 million. BOXD’s net loss increased 154.9% year-over-year to $36.21 million. The company’s net loss per common share amounted to $0.54 for the same period.
Analysts expect BOXD's loss per share estimate to be $0.35 for the fiscal second quarter ending June 2022.
BOXD declined 90.5% year-to-date, closing the last day trading session at $1.30.
BOXD's POWR Ratings reflect this bleak outlook. The stock has an overall rating of F, which translates to Strong Sell in our proprietary rating system. It has a D grade for Value, Stability, and Quality. It is ranked #29 of 31 stocks in the F-rated Internet - Services industry.
Click here to see BOXD's POWR Ratings for Growth, Sentiment, and Momentum.
KalVista Pharmaceuticals, Inc. (KALV)
KALV discovers, develops, and commercializes small molecule protease inhibitors for diseases with unmet needs. Its portfolio includes small molecule plasma kallikrein inhibitors targeting hereditary angioedema (HAE) and diabetic macular edema (DME); and oral plasma kallikrein inhibitors.
KALV's total operating expenses increased 110.8% year-over-year to $26.68 million in the fiscal 2022 third quarter ended January 31, 2022. The company’s net loss came in at $22.47 million, registering an increase of 123.6% year-over-year. Its net loss per share increased 64.3% from a year ago to $0.92.
Street expects KALV's loss per share to amount to $1.09 for the fiscal 2022 fourth quarter ended April 2022, representing an increase of 62.2% from the prior-year period.
Shares of KALV have declined 67.5% over the past year to close the last trading session at $9.12.
KALV's POWR Ratings reflect its poor prospects. The company has an overall F rating, equating to a Strong Sell in our proprietary rating system.
KALV has an F grade for Growth and a D for Momentum, Stability, and Quality. It is ranked #160 of 167 stocks in the F-rated Medical - Pharmaceuticals industry.
To see additional POWR Ratings (Value and Sentiment) for KALV, click here.
NeoGenomics, Inc. (NEO)
NEO is a leading provider of cancer-focused genetics testing services and global oncology contract research services in the United States, Europe, and Asia. The company operates through two segments: Clinical Services; and Pharma Services.
For its fiscal first quarter ended March 31, 2022, NEO’s gross profit decreased 8% year-over-year to $38.23 million. Its total operating expenses increased 59.2% year-over-year to $90.26 million.
Its adjusted net loss increased 437% from the prior-year period to $24.95 million. The company’s adjusted net loss per common share came in at $0.20, up 400% from the prior-year period.
The Street expects the consensus loss per share estimate for the fiscal second quarter (ending June 2022) to be $0.22, widening by 2,138.5% from the prior-year value. Also, the company missed the consensus EPS estimates in each of the trailing four quarters.
The stock has slumped 83.9% over the past nine months to close the last trading session at $7.55.
NEO’s POWR Ratings are consistent with this bleak outlook. It has an overall F rating, which translates to Strong Sell in our proprietary rating system. The stock has an F grade for Growth and a D for Value, Momentum, and Sentiment. It is ranked #49 of 53 stocks in the D-rated Medical - Diagnostics/Research industry.
To see the additional POWR Ratings for Stability and Quality for NEO, click here.
BOXD shares were trading at $1.41 per share on Tuesday morning, up $0.11 (+8.46%). Year-to-date, BOXD has declined -89.71%, versus a -20.87% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta Kumari
Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.
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