Category: Tax Selling Stocks

Top Tech Tax Selling Stocks – January Bounce?

by Fred Fuld III

During the last year, many of the technology stocks, especially the unicorns, have taken a dump, making them possible tax sale opportunities.

If you are wondering what a tax selling stock is, it is a stock that is currently selling for a low price due to heavy year-end selling for tax purposes, but was trading at much higher levels earlier in the year.

As the year-end approaches, many investors employ the technique called tax harvesting , which is the selling of loser stocks to offset any gains that may have been established during the year.

With all the heavy selling, the price of the stocks that have had big drops tends to drop far more than what would normally take place during the rest of the year.

So traders and investors are on the lookout for stocks that are heavily hit, hoping for a significant bounce in January, once the tax selling is over.

So if you are looking for these types of stocks, here is a selection of tech stocks that have dropped by over 50% year-to-date. They all have market capitalizations over $300 million.

Company Symbol Market Cap
ANGI Homeservices Inc. ANGI 3.98B
Casa Systems, Inc. CASA 307.29M
Consolidated Communications Holdings CNSL 315.71M
DXC Technology Company DXC 8.03B
Endurance International Group Holdings EIGI 603.20M
Evolent Health, Inc. EVH 848.25M
Grubhub Inc. GRUB 3.31B
GTT Communications, Inc. GTT 439.58M
ORBCOMM Inc. ORBC 355.38M
Plantronics, Inc. PLT 989.00M
2U, Inc. TWOU 1.33B
Boingo Wireless, Inc. WIFI 552.24M

Hopefully, your portfolio can benefit from a tax bounce.

Disclosure: Author didn’t own any of the above at the time the article was written.

Top IPO Tax Selling Stocks for a Possible Bounce in January

by Fred Fuld III

In case you haven’t noticed, many of the IPO stocks during the last year have turned out to be turkeys, making them possible tax sale opportunities.

If you are wondering what a tax selling stock is, it is a stock that is currently selling for a low price due to heavy year-end selling for tax purposes, but was trading at much higher levels earlier in the year.

As the year-end approaches, many investors employ the technique called tax harvesting , which is the selling of loser stocks to offset any gains that may have been established during the year.

With all the heavy selling, the price of the stocks that have had big drops tends to tank far more than what would normally take place during the rest of the year.

So traders and investors are on the lookout for stocks that are heavily hit, hoping for a significant bounce in January, once the tax selling is over.

So if you are looking for these types of stocks, here is a selection of some that have dropped by over 20% year-to-date. They all have market capitalizations over $500 million.

Stock Symbol Price Drop YTD
Chewy CHWY -29.5%
Fiverr FVRR -43.3%
Levi Strauss LEVI -20.5%
Lyft LYFT -47.1%
SmileDirectClub SDC -29.8%
Uber Technologies UBER -24.2%

Maybe someone’s tax losses can be your tax stock gains.

Disclosure: Author owns FVRR

Top Tax Selling Stocks: Bargains for a Possible Bounce in January

by Fred Fuld III

You may be wondering what a tax selling stock is. It is a stock that is currently selling for a low price but was trading at much higher levels earlier in the year.

As the year-end approaches, many investors employ the technique called tax harvesting , which is the selling of loser stocks to offset any gains that may have been established during the year.

With all the heavy selling, the price of the stocks that have had big drops tends to tank far more than what would normally take place during the rest of the year.

So traders and investors are on the lookout for stocks that are heavily hit, hoping for a little (or big) bounce in January, once the tax selling is over.

So if you are looking for these types of stocks, here is a selection of some that have dropped by over 75% year-to-date. They all have low market capitalizations so they should be considered speculative, as the market caps are all less than $800 million. However, all of these have a price to earnings ratio of less than 12 and all have a price sales ratio less than one.

Company Symbol Market Cap P/E Price
Francesca’s Holdings Corp. FRAN 45.86M 11.81 1.04
Ferroglobe PLC GSM 334.56M 4.15 1.81
Iconix Brand Group, Inc. ICON 9.41M 0.29 0.12
MiMedx Group, Inc. MDXG 190.98M 5.53 1.55
OncoMed Pharmaceuticals, Inc. OMED 31.76M 6.08 0.81
United Natural Foods, Inc. UNFI 788.58M 4.09 11.09
Ultra Petroleum Corp. UPL 189.41M 1.36 0.92

If the above stocks are too speculative for you, here are some stocks that are down over 50% year-to-date and have market caps in excess of $2 billion. They all have P/E ratios less than 14, and a price sales ratio of less than one.

Company Symbol Market Cap P/E Price
CommScope Holding Company, Inc. COMM 3.39B 13.91 16.89
Mohawk Industries, Inc. MHK 8.96B 9.65 117.02
Owens Corning OC 4.83B 10.78 43.44
Spectrum Brands Holdings, Inc. SPB 2.43B 4.66 45.81
Thor Industries, Inc. THO 2.79B 6.25 54.04

Maybe someone’s tax losses can be your tax stock gains.