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Three Stocks Downgraded to Zacks Rank #5 (Strong Sell)
ByAinvest
Thursday, Sep 4, 2025 10:04 am ET1min read
Three stocks have been added to the Zacks Rank #5 (Strong Sell) List: Journey Medical Corporation (DERM), Hope Bancorp (HOPE), and NexPoint Residential Trust (NXRT). The Zacks Consensus Estimate for DERM's current year earnings has been revised 52.2% downward, while HOPE's estimate has been revised 5.3% downward. NXRT's estimate has been revised 2.2% downward.
Three stocks have been added to the Zacks Rank #5 (Strong Sell) List: Journey Medical Corporation (DERM), Hope Bancorp (HOPE), and NexPoint Residential Trust (NXRT). The Zacks Consensus Estimate for DERM's current year earnings has been revised 52.2% downward, while HOPE's estimate has been revised 5.3% downward. NXRT's estimate has been revised 2.2% downward.Journey Medical Corporation (DERM)
Journey Medical Corporation is a commercial-stage pharmaceutical company focused on developing and commercializing pharmaceutical products for dermatological conditions. The company's portfolio includes seven branded and two authorized generic prescription drugs, such as Qbrexza, Accutane, and Targadox. Despite its strong product line, DERM has seen a significant downward revision in its earnings estimates, indicating potential concerns about its financial performance.
Hope Bancorp (HOPE)
Hope Bancorp, a regional bank with a strong dividend yield, announced the retirement of its Honorary Chairman Steven Koh. The bank's latest earnings report showed a miss in earnings and revenue, with net interest income and loan growth projected to be in the high single digits. The downward revision in earnings estimates suggests that investors should exercise caution.
NexPoint Residential Trust (NXRT)
NexPoint Residential Trust is a publicly traded REIT focused on acquiring, owning, and operating multifamily properties. The company recently reported an EPS of $0.80, missing expectations. Despite the miss, the company has seen increased interest from institutional investors, with several major firms raising their positions. However, the downward revision in earnings estimates indicates that investors should be wary of potential risks.
References
[1] https://www.marketscreener.com/news/journey-medical-corp-may-sell-3-750-000-shares-of-common-stock-ce7c50dcda8df121
[2] https://seekingalpha.com/news/4490541-hope-bancorp-announces-retirement-of-honorary-chairman
[3] https://www.marketbeat.com/instant-alerts/filing-northern-trust-corp-has-1802-million-stock-holdings-in-nexpoint-residential-trust-inc-nxrt-2025-09-03/
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