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7 of the Worst Stocks to Buy for 2017

By U.S. News & World Report

While 2017 isn’t baby-faced anymore, there’s still plenty of time on the clock. For investors who haven’t yet rebalanced their portfolio — or for those simply looking to avoid the next market downturn — steering clear of ticking time bombs is absolutely vital for solid 2017 performance.

When looking for stocks to buy, be careful not to chase after 2016’s best performers just because they did well last year.

Investors should regularly be eyeing their portfolios to decide whether they look healthy. That sometimes means deciding what stocks, if any, you want to buy. And for a variety of reasons, you’ll want to stay away from these names — because they’re seven of the worst stocks to buy for 2017.

[See: 10 of the Worst Performing Stocks of 2016.]

Nvidia Corp. (ticker: NVDA). Chip-maker Nvidia had a great year in 2016, as shares more than tripled, making it the single-best performer in the Standard & Poor’s 500 index. Nvidia issued a string of four straight earnings beats in 2016, finishing with a blowout November report in which earnings jumped 104 percent and shares gained 30 percent. It’s true, NVDA is exposed to hot markets like gaming, virtual reality and self-driving cars, but it’s precisely those en vogue buzzwords that have led NVDA to run too far too fast. With shares trading for over 10 times book value, NVDA may have already seen its 2017 media-fueled peak.

Sprint Corp. (S). Like some other stocks on this list, telecom giant Sprint enjoyed a stellar year of returns in 2016. But that doesn’t mean you should run out and buy Sprint shares in 2017. In fact, that would be downright ill-advised.

Sure, in 2016 Sprint surprised Wall Street with some big customer additions, particularly in the second quarter, but its above-average year didn’t necessitate a 120 percent-plus gain. In the grand scheme of things, Sprint is still a highly indebted, unprofitable and second-tier wireless provider in an industry that’s extremely price competitive. Given Sprint has vowed to start raising prices again soon, its streak of subscriber gains could very well end in 2017.

Barrick Gold Corp. (ABX). Before 2016, gold miners like Barrick suffered a multi-year slump as the price of gold tumbled from its 2011 high above $1,830 an ounce to the $1,060 level. Many, Barrick included, had gone on debt-fueled acquisition sprees near the peak of the market, making the post-2011 years mostly dedicated to shoring up the balance sheet. ABX’s balance sheet has improved, but there’s still plenty of debt on the books, and although gold prices modestly rebounded in 2016, the outlook for gold doesn’t look great this year.

The Federal Reserve has committed to raising rates, with three hikes expected in 2017. Higher rates generally hit the price of gold, a yield-less asset. Sorry Barrick!

Advanced Micro Devices (AMD). AMD, like Nvidia, is a chipmaker that went on a remarkable winning streak in 2016. Unlike Nvidia, AMD’s year wasn’t characterized by breakneck growth — instead, the stock soared as the company grew revenue by single-digit percentages and lost money. Remember, investing is all about expectations, and even those lackluster results exceeded Wall Street’s grim expectations.

[See: 7 Stocks That Soar in a Recession.]

While AMD did ink a few surprising deals in 2016, including a licensing deal with a Chinese joint venture and a data center deal with Alphabet ( GOOG, GOOGL), the company frankly hasn’t caught up to its valuation. With a debt-equity ratio of 3.4 and Nvidia and Intel Corp. ( INTC) as competitors, a forward P/E above 45 seems aggressive.

Salesforce.com (CRM). Any company that, in 2016, legitimately considers buying Twitter ( TWTR), doesn’t possess good decision-making skills. Sorry, Salesforce. It’s true.

The reason you should leave CRM off your “stocks to buy for 2017” list is, again, its runaway valuation and troubling philosophy that it can grow via acquisitions for eternity. In 2016 alone, Salesforce snapped up 10 companies, one of which was backed by Salesforce’s CEO Marc Benioff. That’s as many companies as it bought in the previous three years combined. In its biggest acquisition ever, the June $2.8 billion purchase of e-commerce platform Demandware, Salesforce didn’t even use overvalued CRM stock to finance the acquisition, instead using all cash.

JD.com (JD). Just as selling miner Barrick Gold is one way to play the election of Donald Trump — and the assumption of higher rates that come with him — JD.com is also a Trump trade. And, as you might’ve guessed, Trump’s policies aren’t likely to be good for JD.com.

The Chinese e-commerce company would suffer if the U.S. and China get into any sort of trade spat. While the vast majority of JD’s revenue comes from China itself, tariffs on Chinese exports would make buying Chinese less attractive, resulting in fewer manufacturing jobs, lower economic growth, and less consumption. At roughly 50 times forward earnings, it’s not just Chinese exports that don’t look attractive.

Continental Resources (CLR). Investors in shale driller Continental Resources are already factoring quite a bit of improvement from current conditions into the stock price. Shares more than doubled in 2016, and currently trade at nearly four times book value. Even if revenue jumps to $3.1 billion in sales this year as analysts expect, that number still won’t eclipse what it did as long ago as 2013. Like many shale drillers, CLR is overloaded with debt, with $6.6 billion on its balance sheet. Perhaps noting the dramatic run-up in the unprofitable company’s share price, UBS reduced its price target for the stock in late March.

[See: 7 of the Best Cheap Stocks to Buy Under $10.]

Think twice before getting caught up in any of these high-risk, overpriced stocks as you make your moves in 2017.

More from U.S. News

The 25 Best Blue-Chip Stocks to Buy for 2017

7 Best Tech Stocks to Buy for 2017

The 10 Most Anticipated IPOs of 2017

7 of the Worst Stocks to Buy for 2017 originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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