3 Hot Stocks You Shouldn’t Trust

Jumping into these names now could be a huge mistake

    View All  
3 Hot Stocks You Shouldn’t Trust

Just considering the fact that Office Depot (ODP) shares jumped 16% on Tuesday in the wake of the company’s Q1 earnings report, it would be easy to conclude that the office supply retailer was finally back on track.

hot fire flames 630 150x150 3 Hot Stocks You Shouldn’t Trust
Source: Flickr

As veteran traders know all too well about wildly hot stocks, though, there’s always more to the story, and the stronger the market’s knee-jerk reaction, the stronger the reversal is once reality sets in again.

In other words, yes, ODP stock is very likely to come crashing down — and soon — following its post-earnings pop.

It isn’t just Office Depot that has taken traders for an unsustainable bullish spin lately, however. Nutrisystem (NTRI) and Zillow (Z) also soared out of control recently, and are equally vulnerable to a sizable pullback. Here’s why all three hot stocks shouldn’t be trusted to keep chugging at their current pace … or in their current bullish direction.


Article printed from InvestorPlace Media, http://investorplace.com/2014/05/3-hot-stocks-shouldnt-trust/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.