In the wake of GameStop’s (GME) epic stock run in January, Reddit’s WallStreetBets community targeted many other stocks seeking to gain from betting against hedge funds’ short positions, with some success. While many of those stocks lost significant value after hitting their highs, Wall Street analysts believe BlackBerry (NYSE:) and Academy Sports & Outdoors (ASO) are still overvalued. Let’s discuss.Reddit’s WallStreetBets community, which is known for betting on heavily shorted stocks and squeezing out short-selling hedge funds, has made many other fundamentally weak stocks perform in their favor after their success with GameStop (NYSE:) Corporation’s (GME) stock.
However, many of these stocks witnessed noteworthy corrections on profit taking and investors’ concerns over their poor growth prospects.
Despite losing some value since hitting their highs, two of the WallStreetBets stocks–BlackBerry Limited (BB) and Academy Sports & Outdoors Inc. (ASO)–still look overvalued to Wall Street analysts. So, we think it could be wise to avoid these stocks now.
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