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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.

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