Nasdaq is one of the world’s most active stock exchanges. The exchange takes pride in only allowing companies that meet its stringent requirements, including an aggregate earning of $11 million over the last three years and no net loss. Further, companies pay less to get listed on the Nasdaq than on the NYSE, making it more attractive.
However, just because a stock has NASDAQ before its ticker symbol does not mean it’s immediately worth your money. Companies come and go, no matter the exchange, and there will always be Nasdaq stocks to sell.
To get my list of stocks to sell, I screened the NASDAQ exchange for the following criteria:
- Analyst rating: Must have a hold to strong sell rating,
- Earnings growth: Negative earnings growth in its last annual reporting period,
- Revenue growth: Negative revenue growth in its previous annual reporting period.
Then, I arranged the list from the highest to lowest earnings decrease. Here are the results:
Sunpower (SPWR)
With the acceleration of green energy adoption, you’d think that Sunpower (NASDAQ:SPWR) would stand to benefit. For context, the company offers an extensive product portfolio for all things solar power, from panels to batteries to complete systems (Sunpower Equinox). It provides products and services to residential and commercial clients and offers network dealerships for installing and non-installing dealers.
Unfortunately, the company ran into several speed bumps in 2023. The year ended with revenue shrinking by 3% year over year. Add increased costs of revenues and a significantly lower gross profit margin, and EPS moved from a respectable 25-cent profit in 2022 to a disappointing $1.44 loss. These results are enough to convince any investor to toss SPWR out with the other Nasdaq stocks to sell.
The bad news doesn’t stop there. Sunpower expects 2024 to end again on a net loss, and cash flow is anticipated to remain negative until the year’s second half. The news doesn’t exactly incite confidence in investors. Wall Street doesn’t seem enthusiastic about it, rating SPWR stock as a hold based on 26 analysts.
Office Properties Income Trust (OPI)
Office Properties Income Trust (NASDAQ:OPI) is a U.S.-based REIT focused on acquiring and operating office properties that target high-credit-quality tenants. On paper, that sounds like a good thing. The REIT has 151 properties in its portfolio, 20.3 million square feet total and an 85.9% occupancy rate as of Dec. 31, 2023.
Now, onto the bad news. Office Properties reported a dismal end to 2023, registering a net loss for all quarters. Revenue decreased by 4% year over year, but ballooning expenses and investor’s net losses racked up quite a bill. This led to a massive decrease in EPS, from a 14-cent loss in 2022 to a $1.44 loss in 2023.
Its latest report (Q1’24) shows that things aren’t improving either. EPS continues to slide from a 1-cent loss in Q1 2023 to an 11-cent loss in Q1 2024. The company is expected to release its Q2 2024 financials on Aug. 1, though honestly, I’m not holding my breath for good news.
Yael Duffy, president and COO, however, is more optimistic. “Despite significant operational headwinds that continue to impact the office sector,” he says, “during the first quarter OPI completed 488,000 square feet of new and renewal leasing at a 10.2% roll-up in rent and a weighted average lease term of 9.3 years.”
That said, Wall Street analysts don’t share his sentiment, rating OPI stock as a hold. Those looking for Nasdaq stocks to sell might do well heading expert opinion.
GoPro (GPRO)
GoPro (NASDAQ:GPRO), the company behind what was once the most versatile video recorder, is not doing well. Price-wise, the stock is far from its 2016 heyday, when it topped over $86 per share. These days, GPRO stock trades at around $1 to $2. While it did have some positive price movement during the pandemic, its fundamentals are still shaky.
One only needs to visit their local electronics store to see why GoPro’s reported revenue was down 8% year over year in 2023. Yes, GoPro subscriptions are increasing, but so is competition and a lack of innovation.
Adjusted EBITDA slid massively from the previous year’s $95 million to a $27 million loss. The bottom line isn’t faring any better, with earnings decreasing from an 18-cent profit to a 35-cent loss.
GoPro isn’t taking this sitting down, though. “We’re looking forward to launching several new products throughout the year,” said CEO and founder Nicholas Woodman, “opening more retail doors at a steady rate and activating a larger number of marketing initiatives to drive awareness and demand.”
However, Wall Street analysts rate GPRO stock as a hold despite such initiatives. While the company might turn things around in the long run, it firmly belongs on the list of Nasdaq stocks to sell.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.