6 Downgraded Stocks
Just because a company has been downgraded by Morningstar doesn't mean investors should sprint for the exits.
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Mentioned: Keurig Dr Pepper Inc (KDP)
, Urban Outfitters Inc (URBN)
, Gap Inc (GPS)
, Fluor Corp (FLR)
, Valaris PLC (VALPQ)
, Dr Reddy's Laboratories Ltd (RDY)
Here in Chicago, Cubs fans are overcoming a disappointing 2019 season--on the heels of a not-so-pleasing 2018 season. As usually happens in these situations, heads roll--in this case, the “head” belonged manager Joe Maddon. Media reports say that the departure was a mutual decision between the team and Maddon. But either way, when a season (or more) doesn’t pan out as planned, change is pretty common in sports.
It’s common in investing, too. When a company’s performance or long-term outlook don't appear to be panning out as expected, said company gets downgraded. At Morningstar, that may mean reducing a fair value estimate, or lowering a Morningstar Economic Moat Rating or Morningstar Moat Trend Rating.
Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.