TDOC - 3 Absurdly Overvalued Healthcare Stocks Investors Should Avoid
The higher they climb, the harder they fall. While growth stocks are often big winners during a bull market, they tend to endure tough sell-offs during market corrections due to their overvaluation. With the major indices such as the NASDAQ experiencing a 8% pullback from record highs due to excessive call option speculation, investors are wondering the value of their holdings are really worth what they paid for.
This has been the recent experience of Veeva Systems (NYSE: VEEV), Teladoc Health (NYSE: TDOC), and CureVac (NASDAQ: CVAC). Veeva develops cloud-based pharmaceutical data solutions, Teladoc is becoming a leader in the telemedicine industry, and CureVac is developing a coronavirus vaccine candidate. These three healthcare companies are creating a lot of excitement in the investment world. But they are all characterized by one trait -- overvaluation. Let's look at why it's best to wait for the right price before jumping on the bandwagon of these popular stocks.
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