My "three stocks to avoid" column last week was a mixed bag. The three stocks I thought were going to move lower for the week -- Hooker Furnishings, Stitch Fix, and ChargePoint -- finished up 1%, down 28%, and down 1%, respectively, averaging out to a 9.3% decline.
The S&P 500 experienced a 5.1% slide, and the investments I figured would fare worse did lose to the market. I was right. I have been correct in 24 of the past 34 weeks.
Where do I go to next? I see Oracle (ORCL -0.97%), Beyond Air (XAIR 3.36%), and Blink Charging (BLNK -2.97%) as stocks you may want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
Oracle
Time hasn't been kind to one of the titans of enterprise software. The heady growth and Larry Ellison's cockiness appear to be in short supply over the past decade, and we won't have to wait long to get fresh financials. Oracle reports its fiscal fourth-quarter results shortly after Monday's market close.
Growth has slowed at Oracle. Analysts see revenue climbing 4% for the quarter and the entire fiscal year. That's not a fluke. It should be the 11th consecutive fiscal year in which revenue fails to grow by at least 5%. And that's not the only thing that seems to be unimpressive at Oracle. The same company that routinely managed expectations to deliver market-thumping bottom-line results proved mortal last time. It missed Wall Street's profit target, and analysts are bracing for a year-over-year decline in this week's report.
Beyond Air
A much smaller but still potentially problematic company reporting earnings this week is Beyond Air. The clinical-stage medical-device company is pinning its hopes on a successful rollout of LungFit, a treatment device for persistent pulmonary hypertension of the newborn (or PPHN, for short). It ran into some regulatory delays last year, missing its goal of a commercial launch in 2021.
Clinical studies have been largely positive, but Beyond Air is running into a few obstacles. It created a chief medical officer position six months ago, and it's already on its second executive in that role. It has also posted larger-than-expected losses in its last three quarters, a bad omen heading into Thursday's financial update. Beyond Air still has a cash-rich balance sheet, but like most early stage biopharmaceutical companies, it's burning through a lot of dough. It may have to raise money at the worst possible time with the market under pressure.
Blink Charging
There's no denying that electric vehicles are the future, but investors hungry for pick-and-shovel plays may be short-circuiting their prospects by betting on the third-party companies specializing in charging stations. This remains a cutthroat niche, and it's too soon to predict winners.
Blink Charging shares have fallen 75% since peaking early last year, but the stock is still trading at a stiff 24 times trailing revenue. Analysts don't see Blink Charging turning a profit until 2026, and by then we'll probably be looking at a much different landscape when it comes to the leaders of fast-charging stations. A lot can and will happen in the next four years. Did you think the largest maker of electric cars would be announcing layoffs of its salaried staff this year? Blue skies are looking a little gray, and just because you see lightning doesn't mean third-party charging kiosks will ever be profitable.
It's going to be a bumpy road for some of these investments. If you're looking for safe stocks, you aren't likely to find them in Oracle, Beyond Air, or Blink Charging this week.
