3 Sorry Overhyped Stocks to Sell in May While You Still Can

Group 1: Overhyped Stocks to Sell - As June approaches, it is essential to reassess portfolios and identify overhyped stocks that may be at risk of a downturn [1] - Companies can become overhyped due to excessive media attention, unrealistic growth expectations, and market sentiment, leading to inflated stock prices [2] - Investors may be disappointed by meme stocks that initially seem like good contrarian plays, highlighting the need to avoid certain overhyped stocks [3] Group 2: Etsy (ETSY) - Etsy, known for its handmade and vintage items, has faced stagnant growth post-COVID-19, with earnings per share (EPS) fluctuating significantly [5][6] - In 2022, Etsy reported a negative EPS of -5.48, contrasting with a positive EPS of 3.4 in the previous year, and pre-pandemic EPS averaged around 0.68 [6] - The company's current valuation is high at about 30 times earnings, while its projected top-line growth is only 5% [6] Group 3: Lucid Group (LCID) - Lucid Group, an electric vehicle manufacturer, has experienced significant share dilution, with outstanding shares increasing from 0.74 billion to nearly 2.3 billion since the end of 2021 [11] - The company's share count has grown 25.67% year-over-year, and there was a 25% decrease in vehicle production in Q1 2023 compared to the previous quarter [11][12] - The high rate of share dilution presents a risk for investors, making Lucid Group one of the overhyped stocks to sell [12] Group 4: Pitney Bowes (PBI) - Pitney Bowes, known for mailing and shipping solutions, faces threats to its competitive advantage despite a solid dividend yield of 3.81% [14] - The company has seen a significant decline in operating cash flow per share over the past three years due to rising operating costs [15] - The growth of digital-first mailing solutions and increasing competition in the e-commerce shipping space could compress Pitney Bowes' margins and earnings [15][16]