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Special Report

Stocks Voted Most Likely to Disappoint

It's time to separate the gold mines from the land mines.

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There was a time when brokerage firms’ research ranks were referred to as "statistical departments," focusing on now-marginalized data like plant asset histories and dividend records. These days, though, Wall Street seems to die a thousand deaths during earnings season: Just a penny’s worth of difference can cause a stock to crater. Already, quite a few companies--from old-economy names such as Maytag (MYG) to former tech heroes like JDS Uniphase (JDSU)--have already issued warnings, and their ranks are sure to grow as the second quarter draws to a close.

As a rule, our analysts take a long-term approach to evaluating companies, which places the frequently overemphasized role of quarterly numbers in a more reasonable perspective. Still, knowing whether your stocks stand to meet short-term investor expectations can be key knowledge, and we are never afraid to voice caution where caution is due.

Josh Peters, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.