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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...
How to Profit from One of the Worst Stocks on the Market
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