Sell in May and Go Away? 3 Overvalued Stocks to Dump Now

InvestorPlace04-19

As market gains become tougher to come by, the following hard-hit growth stocks seem worth taking a raincheck on or perhaps even selling as May arrives. Lululemon (LULU): The latest quarter was ...

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3 Overvalued Stocks to Dump Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-19 04:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2024/04/sell-in-may-and-go-away-3-overvalued-stocks-to-dump-now/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>As market gains become tougher to come by, the following hard-hit growth stocks seem worth taking a raincheck on or perhaps even selling as May arrives.\nLululemon (LULU): The latest quarter was ...</p>\n\n<a href=\"https://investorplace.com/2024/04/sell-in-may-and-go-away-3-overvalued-stocks-to-dump-now/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1721428933.USD","symbol_name":"法巴全球经典环境基金RH MD Dis","start_time":0,"source_url":"https://investorplace.com/2024/04/sell-in-may-and-go-away-3-overvalued-stocks-to-dump-now/","article_id":"2428424475","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2428424475","pubTimestamp":1713472263,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"There are a few potentially overvalued stocks to sell that have stumbled and may be ripe for selling as we head into the month of May.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1721428933.USD":"法巴全球经典环境基金RH MD Dis","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","PSQ":"纳指反向ETF","QQQ":"纳指100ETF","QLD":"纳指两倍做多ETF","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4579":"人工智能","BK4550":"红杉资本持仓","BK4141":"半导体产品","LU0511384066.AUD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (AUDHDG) ACC","BK4503":"景林资产持仓","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0861579265.USD":"联博低波幅策略股票基金A","LU1691799644.USD":"Amundi Funds Polen Capital Global Growth A2 (C) USD","LU1046421795.USD":"富达环球科技A-ACC","BK4551":"寇图资本持仓","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","NVDA":"英伟达","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","SQQQ":"纳指三倍做空ETF","LU1815333072.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"AUP\" (USD) INC","ADBE":"Adobe","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","ADSK":"欧特克","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK4529":"IDC概念","LULU":"lululemon athletica","BK4528":"SaaS概念","LU0238689110.USD":"贝莱德环球动力股票基金",".IXIC":"NASDAQ Composite","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4023":"应用软件","LU0072462426.USD":"贝莱德全球配置 A2","LU0079474960.USD":"联博美国增长基金A","BK4592":"伊斯兰概念","LU1983260115.SGD":"Janus Henderson Horizon Global Sustainable Equity A2 SGD-H","QID":"纳指两倍做空ETF","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","SG9999000418.SGD":"Aberdeen Standard Global Technology SGD","TQQQ":"纳指三倍做多ETF"},"translate_title":"五月卖了就走？现在抛售3只估值过高的股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ADBE":1,"ADSK":1,"NVDA":1,"LULU":1,".IXIC":0.76,"TQQQ":0.6,"PSQ":0.6,"QID":0.6,"QLD":0.6,"QQQ":0.6,"SQQQ":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"As market gains become tougher to come by, the following hard-hit growth stocks seem worth taking a raincheck on or perhaps even selling as May arrives.\nLululemon (LULU): The latest quarter was disappointing, and the stock’s worst pains may not be over yet.\nAutodesk (ADSK): Accounting uncertainties and a rich price multiple are concerning, to say the least.\nAdobe (ADBE): Generative AI will improve the creative suite. However, it will also improve its rivals’ products.\n\n\n\n\n\n \n\nSource: Shutterstock\n\n\n\nAs we zoom right past the midpoint of April, the “sell and May and go away” phrase will hit the headlines again, as it typically does almost every year, regardless of the circumstances. Indeed, there is no shortage of things to be uneasy about this May. \nThe broader stock market seems to have been running on empty since the second quarter began. And with interest rate cuts that may be delayed (perhaps into 2025?) at the hands of inflation, May 2024 certainly seems like an opportune time for investors to take some profit off the table.\nUndoubtedly, taking a bit of profit off the table of some seemingly frothy winners can never hurt unless we’re talking about ditching the class of winning stocks that have continued to win in recent years. Of such names, Nvidia (NASDAQ:NVDA) immediately comes to mind as one of those winners that sellers may have gotten completely wrong in recent years.\nIn any case, here are three overvalued stocks to sell as May rolls around. \nLululemon (LULU)\nSource: Richard Frazier / Shutterstock.comFirst, we have fallen athleisure firm Lululemon (NASDAQ:LULU), which has added to its losses since reporting some pretty dismal quarterly earnings results a few weeks ago. Today, the stock is around 33% from its January all-time high. Back then, it seemed like the sky was the limit as the firm sought to expand internationally while continuing to command premium prices in a rather mixed-to-muted consumer climate. \nUndoubtedly, Lululemon has been the hot growth play in apparel in recent years. Can one dud of a quarter really change the investment thesis? \nPossibly. Consumers may have felt some of the macro headwinds, but the biggest takeaway from LULU stock’s latest downfall was how quickly and unpredictably fashion trends can shift in the near term.\nThe big question remains whether trends will shift back in Lululemon’s favor in a timely manner. It will certainly be tough for Lululemon to bounce back down the stretch, even if it boasts one of the most robust brands in apparel. \nEven if there’s a turning of the tides on the horizon, I’m not sure it’ll arrive this year. Not while competition in yoga kicks things up a notch, others ditch athleisure for other wear, like denim.\nThe lower guidance may be baked in here at $344 and change, but the 28.3 times trailing price-to-earnings (P/E) multiple remains still too lofty for me until the firm can deliver a big growth surprise.\nAutodesk (ADSK)\nSource: JHVEPhoto / Shutterstock.comAutodesk (NASDAQ:ADSK) is a computer-aided design (CAD) software developer who’s ripe to cash in on the potential of generative artificial intelligence (AI). Undoubtedly, CAD tools require quite a bit of training. With an AI copilot, though, professional users can allocate more time to design and less time learning the ropes. The AI story seems incredibly sound, but the stock has struggled to sustain any traction in recent years.\nThe latest setback struck Wednesday, with shares recently nosediving nearly 6% in a day following an announcement that the firm will delay releasing its annual report due to an accounting probe.\nOnly time will tell what the extent of the accounting situation is. Regardless, one can’t help but feel a great sense of uncertainty with the name right now. Until the air clears on the matter, I’m in no rush to buy the stock, not while it’s trading for 51.1 times trailing P/E, a multiple I find quite rich.\nAdobe (ADBE)\nSource: Tattoboo / ShutterstockSpeaking of companies with much to gain from generative AI tools, we have Adobe (NASDAQ:ADBE). I won’t be the first to admit that Photoshop and Illustrator can be rather challenging to master. As the company invests a great deal in generative AI, we may all be Photoshop wizards without years of expertise. As exciting as Adobe’s AI-powered future stands, the stock has not been off to the races; it’s been plunging. \nIndeed, AI stands to make Adobe’s suite a heck of a lot better. But it also opens the door to potential industry rivals hungry to innovate in AI-powered image and video generation. I have viewed Adobe’s creative suite as having a virtually impenetrable moat for years. Now that firms are leveraging disruptive generative AI technologies, I’m no longer sure how wide that moat is anymore. And in a few years, I have no idea what’s to become of it.\nThe company recently released AI tools to its Premier Pro video-editing software. While these tools are worthy additions to the suite, I can’t help but wonder what Adobe’s rivals are doing and whether they can one-up Adobe in certain areas.\nIn any case, I’m steering clear of ADBE stock after its 25% plunge off 52-week highs. At 45.3 times trailing P/E, the stock is too expensive, in my opinion.\nOn the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.\nJoey Frenette is a seasoned investment writer specializing in technology and consumer stocks. Contributing to the Motley Fool Canada, TipRanks, and Barchart, Joey excels in spotting mispriced stocks with long-term growth potential in a fast-paced market.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/2024/04/sell-in-may-and-go-away-3-overvalued-stocks-to-dump-now/.\n©2024 InvestorPlace Media, LLC","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2428424475"}