We all know financial stocks have gone through the roof since President Trump’s win. So the question becomes: what do we do with these companies now?
There’s no one answer for every financial stock, of course.
Some are still great, undervalued buys—but there are two that have gotten grossly overvalued and should be avoided, or sold if you hold them. (Below, I’ll reveal 3 better high-yield stocks to buy instead.)
These 2 Financials Are Headed for Trouble
Bank of America Corp (BAC) is the first bank on my hit list.
A Breathtaking Rise
After spending most of 2016 in the red, BAC has soared more than 37% in three months. Nothing much has changed at the bank; it’s just riding a wave of euphoria as investors bet that Trump’s America will mean higher interest rates and fewer regulations, driving up BAC’s earnings.
Top 5 Bank Stocks To Invest In 2018: ZTE Corporation (ZTCOF)
- [By SEEKINGALPHA.COM]
Chinese telco equipment giant ZTE (OTCPK:ZTCOF) has been actively cooperating and communicating with relevant U.S. government departments in order to reach a conclusion of the investigation related to the compny’s violations of sanctions on Iran.
- [By SEEKINGALPHA.COM]
The United States has a history of preventing Chinese companies that are even suspected of being state-owned from selling certain products into key industries. Huawei and ZTE (OTCPK:ZTCOF), for example, were under harsh scrutiny for their telecommunications equipment.
Top 5 Bank Stocks To Invest In 2018: Sotheby's(BID)
- [By Travis Hoium]
Shares of auction house Sotheby’s (NYSE:BID) jumped as much as 14.7% in trading Monday after the company released fourth-quarter results. And shares kept steaming, trading 13.6% higher as of 12:30 p.m. EST.
- [By Marshall Hargrave]
Now Loeb's looking to put that capital to work in other markets, with the art market being a perfect candidate. Loeb and his Third Point hedge fund have started their latest activist campaign with leading auction house Sotheby's (NYSE: BID). Loeb joins fellow activist investor Marcato Capital in the stock.
- [By Lisa Levin]
Sothebys (NYSE: BID) reported better-than-expected results for its fourth quarter on Monday.
Sothebys posted quarterly adjusted earnings of $1.35 per share on revenue of $308.69 million. Analysts were expecting earnings of $1.17 per share on revenue of $277.28 million.
Top 5 Bank Stocks To Invest In 2018: Forward Pharma A/S(FWP)
- [By George Budwell]
Shares of theDanish drugmaker Forward Pharma A/S (NASDAQ:FWP) gained 48.2% yesterday as the result of a settlement and licensing deal with Biogen (NASDAQ:BIIB)involving an ongoing patent dispute over the multiple sclerosis drug Tecfidera. Per the terms of the deal, Biogen will fork overa non-refundable$1.25 billion licensing fee, and possibly pay 10% to 20% royalties on Tecfidera’snet sales to Forward starting in 2021.
- [By Jim Robertson]
Last Friday, our Under the Radar Moversnewsletter suggested going long on small cap clinical-stage biopharmaceutical stock Forward Pharma A/S (NASDAQ: FWP):
Top 5 Bank Stocks To Invest In 2018: Apollo Education Group, Inc.(APOL)
- [By Peter Graham]
The Q1 2017 earnings report for small cap for-profit education stock Apollo Education Group Inc (NASDAQ: APOL) is scheduled for after the market closes on Monday (January 9th). Last February, Apollo Education Groupannounced a definitive agreement to be acquired by a consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC (NYSE: APO), and Najafi Companies for $9.50 per share in cash for both Class A and B shares. However, the for-profit education sector along with certain aspects of the Apollo deal have been targeted by the Obama administration and it remains to be seen how the Trump administration will treat the sector and the deal.
Top 5 Bank Stocks To Invest In 2018: Bruker Corporation(BRKR)
- [By Javier Hasse]
Yet another stock experiencing a correction after the bell was Bruker Corporation (NASDAQ: BRKR), which lost 2.75 percent in after-hours, after having gained 4.5 percent during the day.