I’m a Pro Investor: 3 Stocks I’m Dumping in February
Written by
Dawn Allcot
Edited by
Zuri Anderson
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While day traders buy and sell stocks by the minute to try to maximize their profits, most financial consultants recommend taking a long-term view of the market. That doesn’t mean stock investments are a “set-it-and-forget-it” venture, though.
Experts recommend rebalancing your portfolio, or evaluating your investments and determining where you may be under- or over-exposed, on a regular schedule. You might opt to review and rebalance your portfolio quarterly, every six months, or during significant market changes.
With a new U.S. president taking office in January, it might be a good idea to review your portfolio in early February.
Jermal Chandler, options trading expert and live show host at the financial streaming network tastylive, shared his insights on stocks he’s likely to dump before Valentine’s Day, if not sooner.
Intel
While some big tech companies look to be a solid investment in 2025, that’s not the case for Intel. The silicon chip manufacturer is currently trading at less than $20 a share, and it lost its position in the Dow Jones Industrial Average to rival Nvidia in November.
Analysts at StockChase.com are largely bearish about its future. In total, 13 experts deemed it a “don’t buy,” six said, “sell,” and only two called it a “buy.” Chandler agreed with the majority.
“Intel is likely to fall out of my portfolio,” he said. “There’s been a huge shift in the landscape of PC chips, and Intel has clearly fallen out of favor. If the stock is not good enough for the Dow Jones Industrial Average, then I question whether it’s something I should still hold.”
Dollar General
Dollar stores have, surprisingly, struggled in the recent inflationary economy. Its lower-income customer base has struggled to afford even the basics, and the lack of a strong online presence gives many dollar-store retailers a disadvantage.
Raising prices or introducing concepts like Dollar General’s Popshelf, aimed at middle- to upper-income shoppers, hasn’t helped the store’s financial reports.
Chandler said he recently sold shares of Dollar General, having little faith the retailer could turn things around.
“The company has had lackluster earnings over the past several quarters,” he said. “Additionally, the stock has been massively underperforming in an inflationary environment within which it should be thriving.”
NVIDIA
Adjusting your portfolio with an eye toward future earnings doesn’t always mean selling underperformers. After all, wise investors seek to make money. Chandler saw this opportunity with NVIDIA and took it.
“As they say, ‘you can never go broke it you take a profit,'” Chandler explained. “NVIDIA has had a well-publicized gain over the past few years, [so] I have been responsibly reducing exposure.”
Chandler noted that NVIDIA’s standing in the DJIA influenced his decision, as did the company’s investment in artificial intelligence.
“I wholeheartedly believe in the AI story. Therefore, I am still maintaining some type of position. I am certainly not dumping all of my shares,” he said.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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