From Nasdaq

May 13, 2025 03:51 am:

Despite Wall Street’s major stock indexes entering correction territory in 2025, the Dow Jones Industrial Average and S&P 500 remain in a bull market. Not all high-flying stocks are worth buying, as history shows bull markets lasting longer than bear markets. Analysts recommend caution in stock selection during extended market upswings.

Analysts reveal the top 10 stocks to buy, advising against three seemingly unstoppable stocks. Palantir Technologies, a data-mining specialist with a sustainable moat, faces an exorbitant valuation that may not be supported by its operating results. Market history indicates that companies with high valuation premiums face risks of significant corrections.

Tesla, a leading EV manufacturer, shows signs of weakness despite five years of GAAP profits. Competitive pressures and declining vehicle margins raise concerns about the sustainability of Tesla’s valuation. CEO Elon Musk’s unfulfilled promises and overvalued stock may lead to significant share price declines in the future.

Strategy, formerly MicroStrategy, transformed into a Bitcoin Treasury Company with a risky growth strategy. Leveraging Bitcoin acquisitions with dilutive offerings and high premium to net asset value raises concerns. Strategy’s software segment’s lack of positive cash flow and reliance on risky financial maneuvers make it a stock to sell in the current market.

Investors are advised to reconsider investing in Palantir Technologies amid its high valuation. The Motley Fool’s Stock Advisor team identifies 10 best stocks with potential for significant returns. Past recommendations on Netflix and Nvidia highlight the opportunity for substantial growth with carefully selected stocks. Stock Advisor’s track record of market-crushing performance adds credibility to their recommendations.

Read more at Nasdaq: 3 Seemingly Unstoppable Stocks I’d Sell Right Now