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While the concept of market success glamorizes taking shots on potential winners, a holistically positive plan can’t ignore stocks to cut losses on. In other words, it doesn’t really matter if you pick a handful of moonshots if the other losses in your portfolio end up sinking your net holdings into the red. At some point, we all have to call it quits on former investments.

And that’s one of the reasons why I encourage investors not to assign emotionally charged language regarding the trading process. For you to win in the market, somebody must be willing to take the opposite side of the wager. Eventually, that someone could be you when the underlying security no longer justifies the risk. Therefore, you should treat the worst performing stocks to sell agnostically.

Ultimately, exiting out of losers and holding onto winners is about protecting your interests first. Believe me, nobody’s losing any sleep regarding your opinions about equities (unless you’re as influential as Warren Buffett). With that, sell these money-losing stocks before they do too much damage.

TUP	Tupperware Brands	$1.00
CUEN	Cuentas	$4.87
KXIN	Kaixin Auto	$0.26

Tupperware Brands (TUP)

Investment resource Gurufocus identified Tupperware Brands (NYSE:TUP) as one of the companies facing a higher-than-average risk of financial distress. Frankly, it’s not surprising. According to Good Morning America, Tupperware itself warned it could soon be out of business. Among multiple factors, management cited challenging internal and external business economics. Therefore, it’s an easy case for stocks to cut losses on.

To be fair, TUP carries a significant risk for those seeking to short the enterprise. According to Fintel, TUP’s short interest stands at 24.29% of its float. Also, its off-exchange short volume ratio is 60.07%. And per Fintel’s proprietary Short Squeeze Score, TUP comes in at 84.73 out of 100, meaning a much higher chance of a short squeeze materializing.

Nevertheless, TUP makes a case for worst performing stocks to sell because of operational and stability concerns. First, its three-year revenue growth rate sits at 4.6% below zero. Its net margin is 1.36% below breakeven. For stability, it features a very modest cash-to-debt ratio of 0.16. And its Altman Z-Score lands at 1.72, indicating higher-than-normal bankruptcy risk. Thus, TUP’s one of the stocks to avoid for loss cutting.

Cuentas (CUEN)

Another sketchy example of stocks to cut losses on, Cuentas (NASDAQ:CUEN) features a business people can root for. A diverse technology firm seeking to both building affordable housing projects and expand wireless and financial connectivity for everyday Americans, Cuentas isn’t short on wholesome ambitions. Unfortunately, the market doesn’t really care about ambitions unless it’s tied to a credible framework. That’s just not the case for CUEN.

Sure, since the beginning of this year, CUEN nearly doubled in market value. However, in the trailing one-year period, it lost more than 44% of equity value. And in the past 60 months, it’s down nearly 99%. Not surprisingly, Gurufocus labels Cuentas a possible value trap. For arguably most investors, CUEN’s one of the stocks to dump now.

Per the investment resource, Cuentas suffers from seven red flags. Among them, inventory buildup and a severe decline in operating margin (over the past five years) poses major concerns. Further, Cuentas’ three-year revenue growth rate dropped to 38.8% below zero. And its EBITDA growth rate during the same period is 50.7% below parity.

Kaixin Auto (KXIN)

While it’s always difficult to tell people to sell these money-losing stocks, Kaixin Auto (NASDAQ:KXIN) makes the argument easier simply because of its poor performance. Billed as China’s leading new auto retail platform for luxury used cars and imported new cars, Kaixin originally seemed a compelling play on the country’s burgeoning consumer economy. Unfortunately, the narrative hasn’t worked out. In the trailing year, KXIN dropped over 71% of equity value.

To be sure, I’m aware that KXIN trades at 27 cents a pop. However, it runs the risk of collapsing altogether. For one thing, I see no evidence of speculative appeal. Per Fintel, KXIN’s short interest is only 0.07% (which is nothing). Also, in Fintel’s proprietary Short Squeeze Score, it clocks in at a lowly 35.11. Therefore, Kaixin makes a strong case for stocks to cut losses on.

Financially, I’m afraid the company suffers from messy financials. While its balance sheet offers some positive ratios, its Altman Z-Score sits at 8.23 below zero. This stat indicates extreme financial distress. Operationally, you’re looking at a three-year revenue growth rate of 12.5% below zero. Finally, its profit (operating and net) margins sit well into negative territory. Therefore, you should sell these money-losing stocks but especially KXIN.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

As the housing market enters a period of potential turmoil, it’s time to consider the smartest commercial real estate stocks to sell.

Commercial real estate stocks are facing a combination of multiple factors that threaten the sector. That pressure poses the risk of leading to a collapse. Even absent a collapse, a substantial decline in price is highly likely. 

Interest rates remain high and the Fed has signaled that it may again raise rates further. Work-from-home trends continue to be an issue.

Workers are dug in and ready to fight against a return to office. That affects these commercial real estate stocks to sell in a tangible way, as much of their business relies on office buildings and physically present workers. 

Renewed rounds of tech layoffs hasten the stresses on commercial real estate. So, investors should steer clear as the bottom could fall out any day leading to rapid and substantial losses. Here are 7 commercial real estate stocks to sell before they get much worse.

VNO	Vordano Realty Trust	$13.33
BXP	Boston Properties	$47.74
HIW	Highwoods Properties	$20.41
KRC	Kilroy Realty’s	$26.91
SLG	SL Green Realty	$21.99
HPP	Hudson Pacific Properties	$4.50
CUZ	Cousins Properties	$19.85

Vordano Realty Trust (VNO)

Vordano Realty Trust (NYSE:VNO) stock is an excellent example of how hard-hit commercial REITs have been in 2023. The company operates a portfolio of office and retail space primarily in New York City, with other holdings in San Francisco and Chicago.

Currently, several signs suggest that Vordano Realty Trust is already on a rapid downward trajectory. In the first three months of 2023, shareholder net income dropped to $5.168 million. A year earlier that figure stood at $26.478 million.

That is a signal shareholders should think twice about holding on to VNO shares.  

Further, Vordano Realty Trust announced it is postponing dividends on its shares until the end of 2023. The dividend was yielding over 11% and remained one of the prime enticements for potential investors.

Generally speaking, REIT dividends are high because of the risk inherent in the business model. Once suspended, one of the major benefits of investing is gone.

Boston Properties (BXP)

Back in 2021, Boston Properties (NYSE:BXP) was featured in a Barron’s article about return-to-office stocks. Vaccinations and cherry-picked stories praising in-office work strengthened the narrative for BXP.

A year-and-a-half later, the pendulum has swung back in the other direction and office space operators are facing significant risks.

Boston Properties is the largest publicly traded U.S. firm in premier office spaces. It operates spaces in Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, D.C.

It’s fair to assume that east and west-coast workers are more difficult to force back into office than some of their sun belt counterparts. That’s an important factor in states where workers’ rights are stronger. And it’s a detriment to Boston Properties in this case. 

Net income fell from $143 million to $77.9 million during the first quarter. The company is leaning heavily into the biotech/life sciences sector by signing leases with companies in that industry. But there is little reason to believe that can make up for the losses overall.

Highwoods Properties (HIW)

Highwoods Properties (NYSE:HIW) rents exclusively within the sun belt. In sun belt states a top-down approach is more common: If employers favor RTO, then it’s much easier to implement. 

At first blush, that looks to be one factor resulting in stronger operations at Highwoods Properties The numbers substantiate the idea that HIW is a better firm than the two firms immediately above. 

Revenues increased modestly from $206.4 million to $212.75 million in the first quarter. Net income and income available to stockholders increased as well. But the company terminated more than twice as many leases a year ago during the same quarter. 

It also raised rents by 15.9% while increasing its footprint by roughly 35%. That larger footprint costs more now as interest rates are higher.

Highwood Properties is pushing higher rents onto firms that will struggle in a recession. They may not pay at all, so those higher rents now might look good, but may be a false flag.

Kilroy Realty (KRC)

The vast majority of Kilroy Realty’s (NYSE:KRC) portfolio is concentrated in California, with a few of properties in Seattle and Texas. remaining properties, 7 are in Seattle and 2 in Texas. The same argument applies here for KRC stock: Workers in west coast states have a lot more leverage for working from home.

Shareholders continue to be skeptical about Kilroy Realty. The company’s fundamentals aren’t getting worse, though. Revenues increased by 10.3% in the first quarter and net income was up 6.7%. Yet share prices continue to slide and have lost more than 30% year-to-date.

My guess is that tech fears have something to do with investor reticence around KRC. The company signed a 20,000 sq ft lease at  Indeed Tower during the quarter. Another round of tech layoffs is underway. That will affect Indeed as the labor market continues to soften for white-collar workers.

SL Green Realty (SLG)

SL Green Realty (NYSE:SLG) stock represents Manhattan’s largest office landlord. The financial center of the U.S. is ground zero for the RTO vs. remote work argument.

In late 2022, media reports of workers trickling back to NYC offices abounded. By early 2023 though, New York City Mayor Eric Adams was trying to force major Wall Street firms to mandate office returns. 

That’s a clear negative sign for SL Green Realty given its position as the largest office landlord. The firm’s revenues increased in the first quarter, up approximately 20%.

Yet expenses increased a much faster 50% during the same period and SL Green Realty went from net gains to net losses. Interest expenses nearly tripled. Rental income declined. In short, it became a lot more expensive to be SL Green Realty quickly.  

Mayor Adams knows his city depends on the revenues and taxes from office buildings remaining occupied. His bias in pushing for RTO is clear, but it’s not that simple.

Hudson Pacific Properties (HPP)

Hudson Pacific Properties (NYSE:HPP) is another of the highly concentrated commercial real estate stocks to sell. The company leases spaces to tech companies and media companies. That leaves it highly concentrated in San Francisco and Los Angeles, the respective epicenters of those sectors. 

Its fundamentals are flat over the first quarter. The company made about $250 million in sales and lost $20 million. That’s pretty much in line with where it was a year ago.

What’s interesting about the company is how heavily it is betting on a resurgent tech sector. Over 80% of new leasing activity during the quarter occurred in San Francisco. 

The potential problem there is that most of the resurgence in tech in 2023 was in major tech names and AI narratives.

Nvidia (NASDAQ:NVDA) has held up its end of the bargain with a very strong quarter. But will that success trickle down throughout silicon valley and boost the leasees at Hudson Pacific Properties? 

If it doesn’t then HPP stock could be in for a real shock as those small firms ability to pay rent decreases.

Cousins Properties (CUZ)

Cousins Properties (NYSE:CUZ) stock provides the antithesis to the notion that Sun Belt REITs are doing better overall.  

Net income available to stockholders decreased from $28 million to $22.2 million during the first quarter. Cousins Properties leased property to Silicon Valley Bank in Phoenix.

Although the company continues to receive payment on the property, the fact that it is prominently mentioned in the earnings report suggests the risk of default is high. 

Cousins Properties is in a position in which revenue growth of 8.5% is slower than expenses growth, at 13.1%. That is likely to result when losses continue to grow.

The company also has a $62 million loan maturing June 1 for which it took out another loan to pay. In short, Cousins Properties looks to be taking out higher-interest debt to pay lower-interest debt which is a recipe for trouble in the long run. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Buying stocks and purchasing homes are similar in some ways. For example, homebuyers want to buy a house at a cheap price, but they get suspicious if the price is too low. Investors feel the same way when it comes to buying stocks. That’s because if the price of a home or a stock is too low, it’s natural to wonder if something is horribly wrong with the asset. So, I wanted to point out some of the top risky bargain stocks you’d be better off avoiding.

WBA	Walgreens Boots Alliance	$30.01
MMM	3M	$96.94
DIS	Disney	$88.29

Walgreens (WBA)

Last Nov., Walgreens (NASDAQ:WBA) announced that it anticipated that it would fork out as much as $4.95 billion over 15 years to “settle all opioid claims against it by participating states, subdivisions and tribes.” However, based on subsequent, actual settlements made by the firm, I believe that figure will prove to be way too low.

For example, on May 18, WBA disclosed that it had agreed to pay nearly $230 million to settle San Francisco’s claims related to the opioid crisis against it. By May, the company announced that it would pay Florida $683 million to settle that state’s claims against it for damages related to the epidemic. So it’s already agreed to pay out 18.5% of the $4.95 billion to just one state and one medium-sized city. Clearly WBA is going to have to hand over much more than $5 billion to settle the claims against it.

Walgreens has a very low forward price-earnings ratio of 6.6, but it’s definitely one of the risky bargain stocks to void at all costs.

3M (MMM)

Like Walgreens, 3M (NYSE:MMM) has a litigation problem. In fact, the company is facing about 260,000 lawsuits alleging its earplugs failed to protect members of the U.S. military from hearing loss. While the lawsuits are currently in mediation, indicating that 3M may be able to resolve the lawsuits, there’s no guarantee that the mediation will result in a settlement.

In addition, RBC Capital kept an “underperform” rating on the shares. Although 3M reported stronger-than-expected Q1 results, the bank wrote that the firm’s full-year guidance suggests that the company’s performance will remain unimpressive this year. In addition, RBC Capital expects the company to continue to be plagued by supply-chain issues and its customers’ high inventory levels.

MMM has a very low trailing price-earnings ratio of just ten, but its’ definitely one of the most risky bargain stocks in the market.

Disney (DIS)

Disney’s (NYSE:DIS) revenue last year surged to $82.72 billion from $67.4 billion year over year. All after its theme parks reopened and consumers returned to movie theaters. However, its streaming channels lost about $4 billion last year. It also continued to be hurt by the cord-cutting phenomenon and poor movie-theater  attendance. As a result of these negative catalysts, its operating margin fell from its historical median of 25% to just 8.3%. Unfortunately, with theatre attendance still low, and cord-cutting likely to persist, Disney may continue to struggle.

Investment firm Macquarie recently downgraded DIS to “neutral,” saying that the company’s outlook is “clouded with uncertainties.” The financial performance of the company’s conventional TV networks are likely to deteriorate going forward, while DIS may not meet its goal of generating a profit from its streaming businesses next year, warned the firm. DIS stock has a forward price-earnings ratio of 23. That’s a low valuation for a growth stock, and many still put  DIS stock in the latter category. But Disney is clearly a high-risk bargain stock.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.