Stocks to Avoid: EPAM Systems, Paycom Software, Roblox Corp
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The stock market is always full of opportunities, but there are also stocks that investors should steer clear of. Some companies are currently facing challenges that are impacting their stock performance, making them stocks to avoid for the time being.
One such company is EPAM Systems (EPAM). The IT services firm recently reported lower-than-expected sales and revised its revenue guidance for the year downwards. This news caused the stock to crash 27% and become the worst performer on the S&P 500. Despite having an overweight consensus rating on MarketWatch, the majority of analyst ratings for EPAM are neutral or bearish, indicating that it may be a stock to avoid at this time.
Another company to watch out for is Paycom Software (PAYC). While the company’s financials this quarter may seem relatively tidy, a closer look reveals a downward trend in year-over-year revenues. Paycom’s star product, Beti, has been cannibalizing a portion of its services and unscheduled revenues, leading to a decline in stock performance. With an average analyst rating of hold on MarketWatch, Paycom may not be the best choice for investors seeking short-term gains.
Lastly, Roblox Corp (RBLX) has also faced challenges recently, with its Q1 report falling short of expectations and causing a 21% drop in share price. While the stock has since rebounded, it is still down over 20% since the beginning of the year. Several investment firms have revised their target prices and ratings for Roblox, indicating caution among investors. While Roblox’s current challenges may not be insurmountable, it may be wise for investors to avoid this stock for now.
In conclusion, these three companies are currently facing difficulties that are impacting their stock performance. For investors looking to make informed decisions in the market, it may be best to steer clear of EPAM Systems, Paycom Software, and Roblox Corp for the time being.