As the meme stock frenzy took the world by surprise this year, several WallStreetBets (WSB) stocks soared based solely on investors’ sentiment, absent requisite fundamentals. AMC Entertainment (NYSE 🙂 is an example of such a stock. At their current price, its shares seem overvalued. Instead of AMC we believe it is wiser to place your bets on quality meme stocks Caterpillar Micron Technology (NASDAQ 🙂 Gartner (NYSE:). So, let’s discuss these names.Theatrical exhibitor AMC Entertainment (AMCAMC) reported its highest December night opening ever, with a record 1.1 million people attending the ‘Spider-Man: No Way Home’ premiere on December 17. The Leawood, Kans.-based company’s non-GAAP total revenues for the third quarter, ended September 30, 2021, increased 532.3% year-over-year to $755.60 million. Its net loss was $224.20million, compared with a loss of $905.80million in the previous year.

The popular meme stock has gained 1,252.8% year-to-date to close yesterday’s trading session at $28.68. It is trading at 60.5% under its 52-week peak of $72.62, which was reached on June 2, 2021. Wall Street analysts predict that the stock will fall to $8.17 within the next few weeks. AMC’s shares are also trading at an expensive valuation. In terms of forward EV/S and P/S, AMC’s respective 9.98x and 5.91x are higher than the 2.44x and 1.74x industry averages. The stock should be avoided immediately.

Not all meme stocks make good investment choices, but popular stock names Caterpillar Inc., Micron Technology, Inc., Gartner, Inc., (IT), have solid fundamentals. Instead of AMC, it might be wise to grab their shares immediately.

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