The debate America has long been anticipating took place last night between former president Donald Trump and current Vice President Kamala Harris.
The general consensus as of Wednesday morning is that Trump put on a somewhat rocky performance, with many believing Harris performed better than expected. Even conservative voters aren’t thrilled with what they saw from their candidate.
Shares of Trump Media and Technology (DJT) have fallen more than 15% so far as a response. This is the parent company of the Truth Social app, and it’s currently on pace for its worst day since being publicly traded.
Many are using the stock as a way to bet on Trump’s political fortunes. The company itself has admitted that its business does depend at least to some degree on Trump’s popularity, rising and falling with his current standing in society.
Trump struggled to remain on topic in last night’s debate, frequently going off script and neglecting to answer the actual question at hand.
Now, Harris was guilty of the same tactic to avoid answering hard-hitting questions – but many believe she’s not put under the same microscope as Trump, and had a much lower bar set for her going into the debate.
A tie was going to be a win for Harris, and anything less than total domination would be a disappointment for Trump. But looking ahead, it remains to be seen whether we’ll get round 2 or not. Harris’ team challenged Trump immediately after last night’s debate.
In the meantime, DJT has now fallen more than 61% in the past 3 months. It’s important to keep in mind that Trump may begin selling off his own shares when a lock-up agreement ends on September 19th. As of now, he owns nearly 60% of company stock.
So, where does that leave DJT investors? We took a look at this situation in the VectorVest stock forecasting software and found 3 reasons it may be time to cut losses if you haven’t yet.
DJT Has Very Poor Upside Potential and Timing With Poor Safety
VectorVest is a proprietary stock rating system that simplifies your trading strategy by delivering all the clear, actionable insights you need to make calculated, emotionless decisions in just 3 ratings. These are relative value (RV), relative safety (RS), and relative timing (RT).
Each rating is placed on its own scale of 0.00-2.00 with 1.00 being the average, making interpretation quick and easy. It gets even easier, though.
The system issues a clear buy, sell, or hold recommendation for any given stock at any given time based on its overall VST rating. As for DJT, here’s what you need to know:
- Very Poor Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. This makes it a far superior indicator than the typical comparison of price to value alone. DJT has a very poor RV rating of 0.16.
- Poor Safety: The RS rating is a risk indicator derived from a deep analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. DJT has a poor RS rating of 0.60.
- Very Poor Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year. The RT rating of 0.13 is very poor for DJT, reflecting its harsh downward trajectory over the past few months and through this morning so far.
The overall VST rating of 0.37 is very poor for DJT, and the stock is rated a sell. If you haven’t already, it’s time to cut losses. Learn more about this situation, or any other stock for that matter, with a free stock analysis at VectorVest today!
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VectorVest advocates buying safe, undervalued stocks, rising in price. DJT is down 15% and counting this morning after a rocky performance in last night’s presidential debate. The stock has fallen nearly 60% over the past few months, and its future is highly uncertain. It has very poor upside potential and timing with poor safety.
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