Time to reassess your portfolio: 10 stocks that might be headed for a correction
Stocks that might experience a significant drop soon.
The market's recent rollercoaster ride has shaken things up, with the Nasdaq plummeting by 4% on a single day. But it's not just the overall market that needs your attention – some stocks are still heavily overbought, despite the slump. Here are ten of them. Are you prepared for some potential corrections?
Stocks that could see a significant plunge
With a few stocks heavily overbought, it's time to carefully examine your positions, especially those that display an RSI above 70 (overbought). Here's a list of ten stocks that stand out:
Amgen - RSI: 74
Brown & Brown - RSI: 74
American Water Works Company - RSI: 76
LKQ Corporation - RSI: 76
Expeditors International of Washington - RSI: 76
AbbVie - RSI: 76
Verizon Communications - RSI: 77
Gilead Sciences - RSI: 78
Yum! Brands - RSI: 79
Intra-Cellular Therapies - RSI: 85
Yum! Brands, in particular, could face a steep decline, given its high P/E ratio (26) and waning revenue growth. Analysts are cautious about its future value, pointing to no further price potential. Moreover, the CEO's recent large-scale share sales and decreased position have raised concerns about the company.
Yum! Brands (WKN: 909190)
Seeking stability in uncertain times?
In these unpredictable markets, sometimes safeguarding your investments is key. Take a look at the BÖRSE ONLINE Stabile Werte Index for your peace of mind.
A storm looming over Yum! Brands
Multiple red flags suggest a possible storm brewing for Yum! Brands:
- Valuation: Valued at 26 times its earnings, Yum! Brands may appear expensive despite its sluggish revenue growth.
- Analysts' View: Analysts are bearish on the company, predicting no further price upticks.
- CEO's Actions: A concerning sign is the CEO's recent significant share sales and reduced position in the company.
Also read:
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Disclosure: The stock prices in this article derive from an index as their underlying. Boersenmedien AG developed this index and holds the rights to it. Boersenmedien AG has agreed to work with the issuer of these securities, granting the issuer a license to use the index. In this cooperation, Boersenmedien AG receives compensation from the issuer.
- Given the high RSI (79) of Yum! Brands and the concerns surrounding its valuation, analysts' view, and the CEO's recent share sales, it might be a good idea for investors to reassess their positions in this stock within the context of the current stock-market volatility.
- For those seeking stability amidst the unpredictability of the stock-market, the BÖRSE ONLINE Stabile Werte Index could serve as a potential refuge, offering a sense of peace of mind to investors.