(C) Reuters. 4 Ultra-Popular Stocks to Avoid Like the Plague in Q4
Although the market is regaining momentum after a sell-off earlier this month, some stocks that been rallying despite weak fundamentals should see a pullback due to the overall volatility. Ultra-popular stocks SoFi Technologies (SOFI), Camber Energy (CEI), Northern Dynasty Minerals (NYSE:NAK), and ReWalk Robotics (RWLK) have gained substantially over the past few months, but their poor financials and weak growth attributes don’t justify their high valuations.As the market braces up for the final week of a volatile September, major stock indices remain upbeat, recovering from the sell-off witnessed earlier this month. According to data compiled by John Hopkins University, U.S. COVID-19 cases averaged about 120,000 per day over the last week, down from a seven-day average of more than 166,000 cases in early September. This, along with Pfizer (NYSE:PFE) CEO Albert Bourla’s statement that the United States could return to normalcy within a year, has induced optimism among investors concerning the economic recovery.
Since investors remain upbeat as the Fed decided to keep supporting the economy for now, and COVID-19 cases are declining, the stock market is expected to continue its bull run. However, not all stocks are good bets right now. Several ultra-popular stocks have rallied significantly over the past couple of months without possessing fundamental strength. Their weak financial health could trigger a sharp decline in their share prices in the near term.
SoFi Technologies (SOFI), Camber Energy Inc. (CEI), Northern Dynasty Minerals Ltd (NAK), and ReWalk Robotics Ltd. (RWLK) are three such stocks that have gained momentum because of their popularity among retail traders. However, given their bleak growth potential and poor fundamentals, these stocks are best avoided now.
4 Ultra-Popular Stocks to Avoid Like the Plague in Q4
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