3 Popular Stocks to Steer Clear Of
High levels of optimism about a company's future can lead to risky valuations in the present.
3 Popular Stocks to Steer Clear Of
Overview
The media is filled with articles regarding companies that writers tout as solid investments, but there aren't nearly as many discussing which stocks the writers think would be best left untouched. Yet avoiding bad stocks is just as important to your long-term returns as buying the great ones.
In my view, there are pretty clear reasons to steer clear of Space Exploration Technologies (NASDAQ: SPCX), Palantir (NASDAQ: PLTR), and AMD (NASDAQ: AMD), and they all boil down to one issue: valuation. Regardless of the health of the underlying businesses behind them, all three of these stocks' run-ups have significantly outpaced their actual financial results.
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Originally published at www.fool.com.
