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Although strategists believe it’s too early to predict a market correction, the risks have been rising with concerns over changes in Fed policy and the rapid spread of the COVID-19 Delta variant. And although solid second-quarter corporate earnings results have driven the major stock market indexes to hover near their all-time highs, many stocks have become highly overvalued.
Amid this environment, ultra-popular stocks Palantir Technologies Inc . (PLTR), Peloton Interactive Inc . (PTON), Naked Brand Group Limited (NAKD), and Zomedica Corp. (ZOM) could witness significant price declines in the near term because their weak growth prospects don’t justify their current valuations. So, we think these stocks are best avoided now.
