2 Ultra Popular Stocks to Avoid in July By StockNews

© Reuters. 2 Ultra Popular Stocks to Avoid in July

Even though the stock market has solid, forward momentum, and most stocks are hovering near record highs, we think ultra-popular and hype-driven gainers NIO Inc. (NIO) and AMC Entertainment (NYSE:) are susceptible to a sharp downturn due to their weak financials and bleak growth prospects. So, these two stocks are best avoided now.With all three benchmark indexes hovering near record highs, the investment environment is certainly favorable for investors. However, not all stocks that contributed to the market’s momentum are good bets now.

The exceptional rally of some stocks has been driven by their popularity with social-media-influenced retail traders, in some cases despite their companies’ weak financials and bleak growth prospects.

Chinese EV-maker NIO Inc. (NIO) and American movie theater chain AMC Entertainment Holding, Inc. (AMC) have witnessed a skyrocketing rally based solely on their popularity and social media hype. But, since their current price levels are not in sync with their fundamentals, they could witness a price retreat in the near term. Therefore, we think these two stocks are best avoided now.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button