All but one of my "three stocks to avoid" column last week went according to plan, but it wasn't enough. The three stocks I thought were going to lose to the market for the week -- Coinbase (COIN +1.20%), H&R Block (HRB +0.89%), and WD-40 (WDFC 0.51%) -- finished up 23%, up 1%, and down 13%, respectively, averaging out to a 3.7% increase.
The S&P 500 experienced a 1.9% ascent, but the the investments I figured would fare rose nearly twice as much. I was wrong. But I have still been correct in 25 of the past 38 weeks.
Where do I go to next? I see Conagra (CAG +1.48%), Coinbase (COIN +1.20%), and ExxonMobil (XOM +1.86%) as stocks you may want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
Image source: Getty Images.
Conagra
There's a good chance that there's some Conagra in your kitchen. Scour your fridge or pantry, and you may find some Slim Jim beef jerky, Pam non-stick spray, Hunt's ketchup, or Log Cabin maple syrup. There are dozens of Conagra brands that are literally and figuratively household names. I'm still con Conagra this week.
The brand giant reports financial results on Thursday morning. It hasn't been very impressive lately. It has failed to exceed analyst profit targets in back-to-back quarters, and Wall Street expectations have been trending lower in recent months. Being a haven for premium brands isn't a lot of fun when the economy's wobbly and folks are trading down to lower-margin store brands. Wall Street sees revenue at Conagra climbing just 3% this year as well as 2023. It's hard to get excited about this week's financial update with that backdrop.
NYSE: HRB
Key Data Points
Coinbase
The one stock that burned me last week was Coinbase. It soared 23%, more than offsetting the other two selections that failed to beat the market. But I'm not sure the rally is sustainable. Crypto markets have bounced back, but confidence is rattled for digital currency traders. A couple of notable platforms have either frozen assets or filed for bankruptcy protection.
Recovery won't be easy, and you can be sure that the once beefy yields that folks were earning on some of these platforms aren't coming back anytime soon. Coinbase is the top dog, and it will survive the current crisis. It has a strong balance sheet, and it didn't go deep into the risk spectrum to deliver staking rewards for its users.
However, Coinbase was reeling even before lesser platforms were exposed. Retail trading volume plummeted 58% sequentially in this year's first quarter, and the second quarter that concluded last week probably isn't going to hold up much better. Crypto prices may be starting to stabilize now that stock prices are also showing some resiliency, but a lot of scorched investors are going to stay away for now.
NASDAQ: COIN
Key Data Points
ExxonMobil
Stocks were rallying last week, but one of the hottest industries of 2022 took a breather. Oil and gas stocks declined as energy costs inched lower. Will the sector rotation continue in the week ahead?
You don't want to bet against ExxonMobil over the long haul. The integrated oil major has more going for it than just the recent pain at the pump. However, sector rotation makes hot industries mortal during the shift. Did you realize that ExxonMobil's surge over the past year has dropped its once meteoric yield to just 4.1%? If stocks continue to rally it's a safe bet that ExxonMobil will be a laggard for now.
NYSE: XOM
Key Data Points
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 Conagra, Coinbase, and ExxonMobil this week.
