It’s Feedback Friday time! Let’s take another dive into the mailbag.
After reading about your experience and interest in our Green Zone Ratings (GZR) system and other features on the Money & Markets website, we’re even more excited about what’s in store!
You’ve sent great suggestions for how we can make GZR even better, and we appreciate it.
And if you have any questions, comments or suggestions for us, just shoot an email over to feedback@moneyandmarkets.com. We may feature your email in a future installment of Feedback Friday. (Remember, we’ll never publish your full name.)
Today, I want to highlight a recent email from Michael T. He’s asking how a stock ranks using Chief Investment Strategist Adam O’Dell’s Green Zone Ratings system.
Would you please submit Homology Medicines Inc. (Nasdaq: FIXX) to your Green Zone wellness check? The company was expecting some positive testing results but (conveniently?) blamed COVID-19 for testing delays. Your thoughts, please.
Michael T.
New subscriber
Thanks for the question, Michael! We are happy to help you look into Homology Medicine’s Green Zone Rating.
Based on Adam’s system, FIXX doesn’t look like a safe bet at the moment. It only rates a 9, which puts in the “High-Risk” category.
As you can see below, Adam’s recommended action is to avoid or shot stocks within this range (1-20) because the GZR system expects them to “significantly underperform the overall market over the next 12 months.”
Homology Medicine Inc.’s Green Zone Rating
Homology Medicines Inc.’s Green Zone Rating on October 15, 2020.
While Homology Medicine’s size rating is an impressive 86, the stock has high volatility and low momentum. And its low fundamental ratings (value, quality and growth) point to profitability and sustainability issues.
In fact, according to Yahoo Finance, FIXX carries a -2.79 earnings-per-share currently. So it’s losing money at a pretty fast clip.
I hope this helps you make a decision on whether FIXX is worth a spot in your portfolio, Michael.
FIXX doesn’t look like the best biotech play right now, but not to worry: We’ve covered biotech at length in recent weeks.
Here are a couple of investments to consider:
- In a recent episode of The Bull & The Bear podcast, the team ran through three companies focused on a COVID-19 vaccine. One was a buy. Watch the episode here.
- Adam’s biotech pick for his Green Zone Fortunes subscribers has doubled in price since May. Read about why he thinks it’s only getting started here.
And if you want to run any other stocks through our Green Zone Rating system, read this short guide here.
Thanks again for the email, Michael.
If you have a stock that you would like further analysis on, or a feature you would like to see in the Money & Markets daily email, reach out to feedback@moneyandmarkets.com.
Best,
Chad Stone