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The markets may be at record highs, but there is actually a huge profit opportunity from one of the worst stocks on the market right now.
When you are looking for the worst stocks on the market, companies with price-sensitive customers, recent scandals, or any industry disruptions are all great places to look.
The stock that we're bringing investors today is also part of a challenging industry: the food-service industry
The restaurant industry is highly competitive with low profit margins. Because of this, any restaurant stocks trading at a high multiple of earnings should be a red flag. One of the worst stocks now is trading at 150 times earnings, which positions it for a hard fall.
While fast-casual revenue growth grew more than 10% from 2014 to 2015 and the restaurant industry as a whole grew 5%, this company has seen sales fall by almost 20% this year.
Another nail in the coffin for one of the worst stocks now is that customers are price sensitive. That means fast-food and fast-causal companies cannot raise prices to help compensate for rising costs and shrinking margins.
In a highly competitive environment such as the fast-food industry, bad press only exacerbates these problems. And the stock we're targeting today has been facing intense media scrutiny for over a year.
Due in part to this bad press, this stock has fallen 23% year to date (YTD) and almost 9% this week alone. Money Morning Global Credit Strategist Michael Lewitt believes "the stock is headed much lower and is a prime candidate for you to profit from."
Here's one of the worst stocks on the market today and how we plan to profit from it…