Retail traders' favorite under-valued stocks.

Swaggy’s Top Stonks. We compile and analyze data from multiple sources bringing you the top trending tickers from around the internet. If you haven’t subscribed already, please do so below.

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Today's Letter

• Most over-valued stocks loved by the retail crowd.

• Most under-valued stocks loved by the retail crowd.

• Top social stocks with highest TTM revenue growth.

• Coming Soon - Unusual Options Activity.

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Overvalued-Stocks

I went through the top 50 list of names that have been trending since August and gathered their financials. Instead of sorting their “value” by P/E ratio I’ve listed the top 15 stocks with the highest Price/Sales ratio (P/S ratio), which is also another indicator of how expensive a stock is trading relative to their earnings.

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Notable Mentions:

• Nvidia (NVDA): NVDA has been riding the AI tailwind and is up 185% YTD (!!). Relative to their competitor Intel (INTC), NVDA only generates ~10% the revenues, yet trades at a much higher valuation than the value stock. Trade NVDA on your brokerage today.

• Palantir (PLTR): Another AI-hype stock has Palantir up 140% YTD. Palantir gained hype during the meme-stock craze and is down over 50% from it’s peak, but still remains to be one of WSBs favorite plays. Trade PLTR on your brokerage today.

• C3ai (AI): The company that lucked out by having their ticker being AI (just kidding they actually do AI stuff). AI is up 200% YTD while it rides the AI train, literally. Trade AI on your brokerage today.

• Microsoft (MSFT): Microsoft is one of the blue-chip favorites from AI gang. AI-powered Bing search has investors on the look-out for what’s to come next. Trade MSFT on your brokerage today.

• McDonalds (MCD): McDonalds has become over-valued relative to their historical P/E ratio. The company has generally seen a sub-20 P/E due to it’s lower growth and predictable business model. However, in uncertain times this blue-chip stock has become a safe haven to investors, pushing the share price up and it’s P/E to go with. it. Trade MCD on your brokerage today.

• AMD (AMD): AMD is another name trading at a higher-than-usual P/S ratio. It’s valuation comes with high-growth expectations and falls in the same category as NVDA. Trade AMD on your brokerage today.

• Roblox (RBLX): One of the Metaverse’s favorite stocks, Roblox shares are down 40% in the last 12 months (in the real world). Trade RBLX on your brokerage today.

• Apple (AAPL): Meme-crowd favorite? Check. Blue-chip company? Check. Seems to (almost) always go up? Check. Trade AAPL on your brokerage today.

• Coinbase (COIN): Coinbase is actually up 140% this year, but that doesn’t mean much while the share price is down 75% since it’s peak in 2021. Trade COIN on your brokerage today.

• Meta Platforms (META): META has seen it’s ups and downs. From scrapping metaverse plans to launching a (possibly failed Twitter competitor) threads app. META is up 140% in the last 12 months, but still down bad from 2 years ago. Trade META on your brokerage today.

Under-valued Stocks

On the other end of the spectrum, I’ve created a list of names with the lowest P/S ratio from the top 50 most mentioned equities. More importantly, I’ve added a column with their Net Income Growth % over the last year. More on this in the next section, but low P/S isn’t necessarily a good thing unless some of the other fundamentals are favorable as well. Regardless, there are some interesting names on the list.

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