Things went according to plan for my "three stocks to avoid" column last week. The three stocks I thought were going to lose to the market for the week -- Conagra, Coinbase, and ExxonMobil -- finished down 4%, 11%, and 2%, respectively, averaging out to a 5.7% slide.
The S&P 500 experienced a 0.9% descent, and all three of the investments I figured would fare worse did exactly that. I was right. I have been correct in 26 of the past 39 weeks.
Where do I go to next? I see Twitter (TWTR +0.00%), BJ's Restaurants (BJRI 0.99%), and Tesla Motors (TSLA 1.79%) as stocks you may want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
Image source: Getty Images.
Shares of Twitter have soared 16% in the past four trading days. Elon Musk's decision to pull out of his purchase of the platform initially hurt Twitter, but now the stock's rallying as value investors and armchair legal buffs rush to its aid.
There's a healthy amount of upside if Musk is somehow forced to raise the $44 billion that he needed to acquire the social media giant. The problem is that it's never that easy. Even if Musk is found to be liable for the $1 billion penalty associated with walking away, this is just a little more than $1 gain before taxes.
Twitter itself has eroded by more than $1 billion. Musk's theatrics have blurred Twitter's focus, and growth stocks in general have fallen sharply in recent months. No one knows how this saga will end. Even Musk and Twitter don't know. However, with the $54.20-a-share exit strategy seeming so unlikely, investors are bidding up the stock when the potential downside is getting more pronounced and problematic.
NYSE: TWTR
Key Data Points
BJ's Restaurants
It's been a couple of years since I've eaten at a BJ's Restaurant & Brewhouse, but I don't have anything necessarily negative to say about the concept. Blending craft brews, deep dish pizzas, and other casual dining staples covers a wide range of mainstream tastes. However, with the chain of 214 restaurants across the country reporting quarterly results on Thursday afternoon, it's OK to be critical.
BJ's Restaurants has fallen short of Wall Street profit targets in two of its past three reports, and those forecasts have been inching lower heading into this week's financial update. Many chains are coping with soaring food costs, staffing challenges, and rattling consumer confidence. The stock hit a new 52-week low last week. Another uninspiring report this week can make it an encore performance.
NASDAQ: BJRI
Key Data Points
Tesla Motors
An initial beneficiary when Musk announced that he had lost that loving feeling with Twitter was Tesla. His electric-vehicle empire could now get more of its CEO's attention. Tesla probably needs it.
Tesla Motors is gaining market share, but growth is decelerating. Analysts see revenue growth slowing from 58% this year to 37% next year. Higher gas prices helped draw attention to Tesla vehicles, but we've seen prices at the pump sink swiftly in recent weeks. Nearly every automaker is working on electric vehicles, with many of them at lower sticker prices than Tesla. Don't forget that Tesla recently went through layoffs, so it's not exactly the picture of health these days.
The long-term prognosis for Tesla is bullish. The valuation is a concern, and there could be some speed bumps in the near term.
NASDAQ: TSLA
Key Data Points
It's going to be a bumpy road for some of these investments. If you're looking for safe stocks, you aren't likely to find them in Twitter, BJ's Restaurants, and Tesla Motors this week.
