4 Overvalued Recent IPOs to Avoid in September By StockNews
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© Reuters. 4 Overvalued Recent IPOs to Avoid in SeptemberA low-interest-rate environment and bullish market sentiment have increased initial public offerings over the past two years. Recently-listed stocks Robinhood(NASDAQ:), SentinelOne, Full Truck (YMM), Traeger (COOK), have all seen significant increases in investor interest for IPOs. These IPO stocks are highly overpriced considering the limited growth prospects. These stocks should be avoided. The total number of IPOs last year was 480. This year, the number is even greater. Stock Analysis says that 742 IPOs have occurred so far in this year.
But, the Federal Reserve might raise interest rates by 2023. It also recently expressed its desire to cut asset purchases prior to the end. In addition, Investors’ concerns over the economic recovery due to the resurgence of COVID-19 cases and high inflation could pose a threat to many recently listed stocks.
Investor optimism over recently-listed stocks Robinhood Markets , Inc. (HOOD), SentinelOne, Inc. (S), Full Truck Alliance Co. Ltd. (YMM), and Traeger, Inc. (COOK) has helped them reach price levels that don’t justify their recent financial performance and growth prospects. Avoid these stocks now.
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