Finance

5 Overvalued Growth Stocks to Avoid as Market Conditions Get More Bearish By StockNews

© Reuters. 5 Overvalued Growth Stocks to Avoid as Market Conditions Get More Bearish

Concerns about high inflation and the resurgence of COVID-19 in several countries could sustain bearish market sentiment in the near term. Consequently, growth stocks Snowflake (SNOW), Peloton (PTON), Chewy (NYSE:), Teladoc (NYSE:), and C3.ai (AI), which all look overvalued at their current price levels, could witness a decline in the near term. So, we think these stocks are best avoided now. Read on.The major benchmark indexes witnessed a pullback earlier this week on concerns about the spread of the COVID-19 Delta variant in several countries. COVID-19 cases, hospitalizations, and deaths are rising in the United States, and the Delta variant is responsible for 80% of new cases. This, combined with concerns over the ascending inflation rate, has introduced bearish market sentiment.

While many expect the risk-off sentiment to be short-lived and the economic growth to continue, some stocks that have moved ahead of their growth prospects on optimism about continued economic growth might retreat in the near term.

Growth stocks Snowflake Inc. (SNOW), Peloton Interactive, Inc. (NASDAQ:), Chewy, Inc. (CHWY), Teladoc Health, Inc. (TDOC), and C3.ai Inc. (AI) all look overvalued at their current price levels considering their limited near-term growth prospects. So, we believe these 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