Before diving into the discussion of overvalued stocks due for correction, we need to establish one thing about this list: every company you see here represents a fundamentally sound business. In other words, the focus of this narrative centers on trimming exposure. We’re absolutely not here to discuss shorting embattled organizations, which is a different
Stocks to sell
This article is an excerpt from the InvestorPlace Digest newsletter. To get news like this delivered straight to your inbox, click here. When I needed a new vacuum cleaner last month, I knew exactly where to go: Bed Bath & Beyond (OTCMKTS:BBBYQ). The New Jersey-based retailer, which filed for Chapter 11 on April 23, had been
It’s understandable if some investors are intrigued by QuantumScape (NYSE:QS) stock. The electric vehicle battery technology company’s forever battery seems promising, at least in theory. Since QuantumScape is taking a while to move from idea to revenue, there’s significant risk that QS stock might lose value over the coming months. Indeed, QuantumScape stock has already declined
Hedge funds continue to exert outsized influence over equity markets. The world’s 20 largest hedge funds collectively hold $45 trillion of assets under management. The largest hedge fund in the U.S., Bridgewater Associates, manages $126 billion. These massive funds often buy and sell billions of dollars worth of stock at a time, moving markets in
Navigating the financial sector’s tumultuous waters has been incredibly challenging, especially with the unexpected collapse of Silicon Valley Bank in March. This event has cast a long shadow over the sector, causing bank shares to struggle and putting Wall Street on high alert. Amidst this uncertainty, short-sellers and fundamental investors seeking value are looking to
It’s safe to say the jury is still out whether QuantumScape (NYSE:QS) will revolutionize electric vehicle battery technology. However, when it comes to QS stock itself, we may already have a verdict. It’s possible this company will bring solid-state EV batteries to market, but it may be all but certain that QS turns out to
While the concept of market success glamorizes taking shots on potential winners, a holistically positive plan can’t ignore stocks to cut losses on. In other words, it doesn’t really matter if you pick a handful of moonshots if the other losses in your portfolio end up sinking your net holdings into the red. At some
Amid 2023’s continued stock market drama, homebuilder stocks have remained surprisingly resilient even as analysts predict an imminent crash. But homebuilder financial and operational reporting is built on a foundation of lagging indicators. Those indicators may be catching up to reality. The homebuilding market is rife with examples of the bullwhip effect; changes in consumer
As we stare down the possibility of a recession, it’s time to consider which consumer stocks to sell. Americans are now being thriftier than they have over the past year. Consumers are trading down and that is putting pressure on the U.S. economy which is heavily dependent on consumer spending. In turn, that has created
As the housing market enters a period of potential turmoil, it’s time to consider the smartest commercial real estate stocks to sell. Commercial real estate stocks are facing a combination of multiple factors that threaten the sector. That pressure poses the risk of leading to a collapse. Even absent a collapse, a substantial decline in
Buying stocks and purchasing homes are similar in some ways. For example, homebuyers want to buy a house at a cheap price, but they get suspicious if the price is too low. Investors feel the same way when it comes to buying stocks. That’s because if the price of a home or a stock is
Since Facebook formally changed its name to Meta (NASDAQ:META), the Metaverse has been a siren song for investors and companies alike. Billions of dollars have been dashed upon the rocks chasing metaverse profit that often failed to materialize. In such times, wise investors need to cut their losses and sell the metaverse stocks that fail to deliver.
Is your portfolio waving a red flag? Do you have some stocks that are in peril? Those are what we call red flag stocks. Historically, red flags were used as a visual signal to indicate a warning or danger ahead. Red flags signal dangerous conditions in maritime usage and have been used throughout history by
It might be time to start looking for stocks to ditch. Stock markets continue to be volatile and plenty of well-known companies are seeing their share prices fall to new lows. Regardless of whether the declines are because of poor management, macroeconomic headwinds, growing competition, or negative investor sentiment, many once dominant stocks are struggling
When looking at a number of overvalued blue-chip stocks, “Sell in May and Go away” fits. Typically, blue-chip stocks are generally among the safest stocks to own. These are companies that generate consistent revenue and earnings because their products are generally in demand no matter what’s happening in the economy. But even blue-chip stocks can
While there are plenty of bargains to buy among penny stocks, there are also a good amount of overvalued penny stocks to sell. While significantly lower-priced now than they were at their respective high water-marks, many of these stocks are hardly bargains, trading at valuations unsustainable relative to their current operating performance. Rather than having high
No, you read this correctly – we’re here to discuss overvalued value stocks to sell. Seemingly a contradiction in terms, a company that becomes overvalued by nature is no longer a value play. However, the emphasis here is on enterprises that historically carried an undervalued label but no longer justify that status. Think of it this
I don’t want electric vehicle manufacturer Mullen Automotive (NASDAQ:MULN) to fail. Competition in the EV space is a good thing, and the more automakers there are, the better. Yet, MULN stock is at risk of going to zero. Along with that, Mullen Automotive’s existence as a viable business venture is in peril. Mullen Automotive can
Navigating the tumultuous housing landscape can be a nerve-racking endeavor for long-term investors. With towering home prices, escalating mortgage rates, and a shrinking inventory, the echoes of a potential housing market crash are difficult to ignore. Hence, investors may want to consider which stocks to avoid, if the housing market tanks. The housing market’s health
There’s no denying that Shopify (NYSE:SHOP) stock hit a grand slam with the company’s quarterly results, released earlier this month. It’s also encouraging to know that Shopify plans to focus on its core e-commerce business and will cut costs by reducing its headcount. On the other hand, investors might want to take it slow with SHOP