Could AAL, OXY, HOG, COTY, CTL – 5 Debt-Laden Stock Portfolio Actually Score Big?

Here is the article. 

They are all part of our high leverage portfolio where we advise investors to exercise caution. We identified this portfolio of The Leveraged 5: AAL, CTL, COTY, OXY, HOG - with debt being more than twice the market value.

1. The market price of all 5 companies dropped by -25% to -35% between 2016 and 2019, with the onset of Covid-19 only making it worse. All 5 stocks fell sharply in 2020, with declines ranging between -20% and -50%.
2. The stock price change was not surprising once we found that EPS of all 5 companies declined in the last 5 years despite an increase in revenue. In fact, 3 out of these 5 stocks have reported a net loss on 2 or more occasions in the last 5 years.

This is what ties these seemingly unnatural comrades - high leverage, consistent market price decline, and no signs of EPS growth. They’re all part of the S&P 500 and look like high-risk, high-return companies when it comes to potential returns in the long run.