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Although there has been solid progress on the vaccination front in the U.S., investors are concerned about the possibility of the hyper-infectious variant of the COVID-19 virus delaying economic recovery. Based in-part on this concern, the stock market has been witnessing the most intense selling pressure since October, with airlines, hotels, and travel-related stocks the most affected. All three major benchmark indexes have seen a level of correction over the past week.
Against this backdrop, we think investors should avoid fundamentally weak stocks Airbnb Inc. (ABNB), AMC, Entertainment Holdings Inc. (AMC), United Airlines Holdings Inc. (NASDAQ:UAL), and Norwegian Cruise Line Holdings Ltd . (NYSE:NCLH). They could suffer a major pullback on their weak fundamentals and growth prospects.
