WallStreetBets (WSB), large bets against short sellers, and the resulting short squeezes caused shares of many companies to soar in value. However they also led to high valuations for some fundamentally poor companies. Wrap Technologies (NASDAQ) and Root Inc., both WSB stocks, should be avoided. They have bleak growth prospects. We think the reverse is true. AZZ Inc . Del Taco Restaurant and (NYSE:), should deliver huge gains, and are ideal choices now. Keep reading. Reddit’s WallStretBets (WSB), a community that bets heavily on companies, and squeezes out short-selling hedge money, is now triggering price rises in other stocks regardless of fundamental strength.

While WSB typically targets fundamentally weak stocks with a considerable level of short interest, we believe that a few of the subreddit’s heavily discussed stocks possess sufficient fundamental strength to generate solid returns. Two such stocks are Del Taco Restaurant Inc. AZZ (TACO), and Del Taco Inc. AZZ Inc. Because of their strong fundamentals, they could be long-term losers. These could make them solid options now.

Root Inc., (ROOT), and Wrap Technologies Inc., (WRAP) are likely to suffer a large pullback because of their high valuations relative to their underlying fundamentals and financial strength. Avoid these stocks now.

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