3 Overvalued Stocks Wall Street Predicts Will Fall by 40% or More

The stock market is encountering a rough patch despite strength in broader indices. There has been profound underperformance in small caps, mid-caps, and growth stocks…

If the selling accelerates, some of these stocks could likely see another major leg down. Overvalued stocks will also be vulnerable as they are less likely to have buyers on the way down.

Microvast (MVST – Get Rating)Globalstar (GSAT – Get Rating), and State Auto Financial Corporation (STFC – Get Rating) are three stocks Wall Street analysts believe will fall 40% or more. Below, we provide a look at these three publicly traded companies to determine if they are actually overpriced.

MVST

MVST is a tech business that specializes in designing, developing, and making solutions powered by lithium-ion batteries. Based in Houston, MVST previously conducted business as Tuscan Holdings Corporation.

MVST has a D POWR Rating grade. The stock has Ds in the Quality, Value, and Sentiment components of the POWR Ratings. You can learn more about MVST’s individual POWR Rating component grades by clicking here.

Out of 91 stocks in the Industrial – Equipment sector, MVST is ranked 79th. Click here to find out more about the stocks in this sector.

MVST fell nearly 10% in trading today following its admission that quarterly losses were significantly worse than anticipated compared to the numbers from the same period in the prior year. The chip shortage along with shipping delays are clearly taking a chunk out of MVST’s bottom line.

GSAT

GSAT provides satellite data and voice services to both recreational and commercial customers across 120 nations. The company’s products include fixed satellite and mobile phones, satellite data modems, and cellular/landline service to remote areas. Examples of GSAT customers include business in the oil/gas, mining, government, transportation, forestry, heavy construction and commercial fishing industries.

GSAT has a D POWR Rating grade. The stock has C grades in the Growth, Stability, Sentiment and Quality components. You can find out how GSAT fares in the Value and Momentum components by clicking here.

Out of the 23 stocks in the Telecom – Domestic sector, GSAT is ranked 19th. Click here to find out more about the stocks in this space.

GSTAR dropped nearly…

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