It will be tough for the stock market to keep up the pace after such an explosive first half. Undoubtedly, stocks could easily continue to rise if demand for artificial intelligence accelerates further. In any case, it’s far smarter to lower expectations by a notch, especially with valuations getting a tad ahead of their skis.
While not all stocks are pricier than when the year began, I think certain names stand out as more ripe for profit-taking than others. In this piece, we’ll have a glimpse of three overhyped stocks to sell that may be in for rougher waters in the second half. Whether they’re more vulnerable to amplified downside in the face of the next market crash or correction remains to be seen.
Either way, I find there to be a lack of value in the following names. Tesla (TSLA) After running into several road bumps in the first half, Tesla (NASDAQ: TSLA ) shares may be viewed by some as more of a prime buy-the-dip candidate. It is still a Magnificent Seven company, after all, and one that could have room to run if it’s to catch up to its six better-performing rivals.
At the time of writing, TSLA stock was down just over 20% in the first half. With a much-hyped robotaxi event in store for August, the electric vehicle (EV) maker may have the catalyst it needs to make it magnificent again. Despite the relatively modest multiple — 54.
1 times trailing price-to-earnings (P/E) — Tesla and the other autos could roll further downhill from here as hopes for a delive.
