When picking out your portfolio, it's essential to find the right stocks. Of course, you'll come across a few flops (believe me, I know). That's what I'm here to help you find. Here are five stocks that will be problematic for your bottom line.
WWE: While the stock has grown over the past year (11.59%), there are some legit concerns with the brand. For example, the Connecticut-based company is having trouble selling tickets for Wrestlemania 38. There's also the emergence of AEW, a wrestling company owned by Shahid and Tony Khan of the NFL's Jacksonville Jaguars. There's also the plummeting television ratings, drastically down from their glory days of the late 90s and 2000s. On top of that, it has a PE ratio of 27.83, making it slightly overvalued. If you have WWE in your portfolio, it's best not to sell it, though. The aforementioned gains from last year make it a good stock. Plus, Vince McMahon has a chance for a new rights deal that'll make him a fortune.
General Motors: Personally, I prefer Ford if you're looking at the Big Three Automobile stocks. Ford is drastically undervalued, is gaining steam in the electric vehicle market, and has room for growth. However, I can't say the same for General Motors. The other Detroit-based company has lost 19.41% of its value over the past year. Plus, the American auto market is becoming more crowded every year and auto stocks drastically sell off due to macroeconomic reasons.
Electronic Arts: I'm not a big fan of EA's business practices. From alleged anti-competitive practices to "loot crates", the gaming company rubs me the wrong way. It's also overvalued with a PE ratio of 56.88. Companies like Microsoft and Sony are better at catering to the casual gamer. They also have greater resources than EA does, with the ability to make their own consoles. It's tough for third-party developers to stand out as game-changing stocks, especially if they don't offer innovation and cutting-edge consoles.
Netflix: Wait, a FAANG stock? On this list? Unfortunately, that's the case for this entertainment service. In November, it was riding high at $691.69. Now, that price has nearly been halved, sitting at $360.21. That was due to its EPS drastically dropping for the fourth quarter. There's also Netflix burning through billions of dollars to make new content. Granted, the company is dabbling in new areas, such as gaming and daily trivia games. However, subscription services for on-demand viewing have emerged. Just look at Disney+ and Peacock.
Appian: Last year, Appian was up 1,408.93%, sitting pretty at $226.34. Now? The Virginia-based company is at $53.69. What a fall from grace. The same can be said for their EPS, which shows fallen earnings. While that number has steadily gone up and other stocks have taken a hit, it's still alarming to see a stock lose four times its value.