4 Ultra-Popular Stocks to Avoid Like the Plague in Q4 By StockNews
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:), 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. John Hopkins University data shows that the average daily number of U.S. COVID-19 patients fell to around 120,000 from 166,000 in September’s early September. This, along with Pfizer (NYSE:) 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.
As investors are optimistic that the Fed will keep the economy supported for the time being, COVID-19 cases have declined, it is likely that the stock market will continue its bull run. But not all stocks right now are good choices. Some stocks with high popularity have experienced significant gains over the past few months even though they do not possess fundamental strength. They could see a steep decline in shares prices due to their poor financial position.
Because of the popularity they enjoy among retail traders, SoFi Technologies is (SOFI), Camber Energy Inc./CEI, Northern Dynasty Minerals Ltd.(NAK), ReWalk Robotics Ltd./RWLK are just a few examples. They are not recommended for investors due to their low fundamentals and bleak potential growth.
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