Wall Street finally moved higher last week. I thought my three stocks to avoid for that week -- Booking Holdings, Camping World, and Cedar Fair -- were going to lose to the market. They rose 4%, 15%, and 12%, respectively, for an average jump of 10.3% for the week.
The S&P 500 moved 5.9% higher, so I was wrong. I have still been right in 67 of the past 106 weeks, or 63% of the time.
Let's turn our attention to the new week. I see Angi (ANGI 1.73%), Blink Charging (BLNK 3.90%), and Mosaic (MOS 6.59%) as stocks you might want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
NASDAQ: ANGI
Key Data Points
1. Angi
Folks aren't turning to the site formerly known as Angie's List the way they used to. Revenue growth has decelerated for four consecutive quarters at Angi, clocking in with negative top-line moves in the last two reports. A change in the way the hub for home services recognizes services revenue is accounting for some of the recent weakness in year-over-year comparisons, but that only covers half of the latest quarter's slide.
The business is still going through some growing pains at this point. The stock plummeted 36% in August on the poor report. Customer demand is slipping, and so is the number of service providers on the platform, down 22% over the past year. The network effect isn't pretty when it's going in reverse.
Image source: Getty Images.
Angi will report its third-quarter results after Tuesday's market close. Analysts see Angi posting another deficit on a 24% drop in revenue. The revenue recognition shift earlier this year is still weighing on the headline numbers, but the business is still going the wrong way on an organic basis.
The volume of service requests has fallen 12% over the past year, too. High mortgage rates are keeping homeowners in their current digs, but it's not leading to a surge in home improvement and other handyman projects. If it is happening, it's not taking place on Angi's platform, with service pros looking elsewhere to generate leads.
NASDAQ: BLNK
Key Data Points
2. Blink Charging
The future is bright for electric charging, but it hasn't stopped Blink Charging from being a serious market laggard. The provider of charging equipment and services for electric vehicles has seen its stock plummet nearly 80% since the last time it was on this list nearly 11 months ago.
The valuation on Blink has gotten kinder, with revenue soaring and the share price retreating. However, with Blink reporting quarterly results on Thursday afternoon, it could be another grim earnings release. Losses continue for Blink, and analysts see the red ink continuing until 2027. There's a cash-rich balance sheet here, but it's going to need to raise more greenery as it burns through its liquidity.
Blink went public at a time when there were few public plays on the electric-charging revolution. With the playing field getting more crowded, the path to profitability is getting bumpy.
NYSE: MOS
Key Data Points
3. Mosaic
All three of the stocks on this list are reporting fresh financials this week. We're in the thick of earnings season, with hundreds of companies reporting on a typical trading day. Mosaic, stepping up with its quarterly results on Tuesday afternoon, checks off a lot of the boxes that I tend to look for in picking potentially poor performances.
Mosaic is a giant in the fertilizer market, but it's struggling. Revenue had fallen sharply in back-to-back reports. Net income has declined in the last three quarters. Wall Street pros who know the concentrated phosphate and potash crop nutrients market better than I do see a 44% plunge in revenue on a brutal 76% plummet in earnings. Making matters worse, those same analysts have overestimated Mosaic's earnings power in all four of its previous reports. Mosaic trades at a low earnings multiple, with a currently sustainable 2.4% yield, but if there's one thing I know about fertilizer, it's that you can't reap a bountiful harvest if the seeds aren't sticking to the soil.
The stock market is always on the move. If you're looking for safe stocks, you aren't likely to find them in Angi, Blink Charging, and Mosaic this week.
