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TOM LEE: Stay Away From These 9 Stocks

Akin OyedeleOct 24, 2014, 23:31 IST

Fundstrat Global Advisors' Tom Lee has screened the market for stocks that he believes are going nowhere or going down.

He found nine.

"The nine avoid ideas are based on the seven industries with the greatest positive dislocation and hence more likely to correct," Lee wrote in a note to clients.

All of the names on the list are in the electric utilities industry. They have a P/E ratio (2015 estimate) of greater than 15.0x, and free cash flow yield of less than 2%.

Lee believes the S&P 500 and Dow Jones Industrial Average could double in five years. But these nine names are expected to be a drag.