STOP! Read this before you put your money in these stocks!

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Overvalued stocks are everywhere and very difficult to identify. They hide behind cheap valuations, but in reality, they bring a frightening amount of risk.

Save yourself the trouble and stay clear from these two stocks.

  1. Nokia

With its shares trading at only 0.89 times, many investors would jump to the opportunity to trade Nokia stock. However, there are some things you should consider.

Despite having a 5G conversion rate of 90% from customers, the company saw a drastic decline of its revenue by 6%. In 2020, its operating margin declined to 10.6% from 12.3% in 2019.

Unfortunately, the company’s outlook for the next month at least is looking even gloomier. Experts predict a crash in its revenue to 20.6 billion euros this year. It could be partially because most of its customers are dropping Nokia’s traditional 4G network for 5G, which the company still needs to upgrade.

At a time when just about every telecom provider is turning to 5G, it’s best to stay away from Nokia stock and search for better alternatives

2. Sundial Growers

Once quite popular, today Sundial Growers is struggling to make ends meet. The marijuana company needs to take drastic measures to cut its losses, instead it has gotten into the habit of turning to the capital markets for cash. In July 2020, the company had less than 200 million shares outstanding.

Furthermore, its national market share fell to 2.7% from 3.3% in Q3 2020. Having this in mind and the fact that its shares are trading at 6.8 times sales for negative growth, this is the number one stock to avoid this year.

Where should you invest $250 instead?

If you want to start making real profits, investing legends just revealed the number one stock any investor should put their money to this month.

AND THE WINNER IS

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