These stocks need to start performing! (U.S. News & World Report)
In late September, mall retailer Forever 21 became the latest major U.S. company to succumb to bankruptcy. Despite a booming economy, the retail sector has been under intense pressure from Amazon.com (ticker: AMZN) and other online retailers and has lost 197,000 total jobs since January 2017. Forever 21 joins several other massive retailer bankruptcies in the past two years, including Sears, Toys R Us, Payless Shoes and Claire’s. Unfortunately, Forever 21 will likely not be the last big U.S. company to go the bankruptcy route. Here are six stocks that could also end up in bankruptcy.
Frontier Communications Corp. (FTR)
Wireline telecom company Frontier has seemingly been on the brink of bankruptcy all year, but it eased concerns about an imminent filing by making a $320 million debt payment in September. CFRA analyst Keith Snyder says declining subscriber numbers and looming debt payments are a bad combination for Frontier, and he’s skeptical of the company’s ability to financially navigate the next couple of years. To make matters worse, Frontier shares are now trading near $1, putting the stock at risk of delisting. CFRA has a “strong sell” rating and a price target of 50 cents for FTR stock.
J.C. Penney Co. (JCP)
Before buying any stock, make sure to do your research and observe the rating financial analysts assign it. The last thing any investor wants is to be chained to a company that fails to produce the returns they hoped for.
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