Time to Cash Out? 5 Stocks to Sell Before Earnings Hit

The S&P 500 shows an upward trend with new all-time highs, while gold and Bitcoin also reach new records. Major market moves include significant partnerships and deals for OpenAI, AMD, Nvidia, and Oracle. With October historically being volatile and earning season approaching, the video will examine five stocks at risk. Market Dash, today's sponsor, is highlighted as an exceptional investment platform, offering tools like institutional activity tracking, intrinsic value models, SWOT analysis, analyst ratings, and insider activity tracking. A 7-day free trial is available.

ASML previously experienced a continuous drawdown due to tariff fears, leading to management's uncertainty about short-term growth. Recent news reveals the US House panel has criticized ASML's Chinese business due to national security concerns, affecting 27% of its sales. The stock, once a strong buy near its 52-week low, is now near its 52-week high, up 42% year-to-date, significantly outperforming the S&P 500. Upcoming earnings are expected to show 9% year-on-year growth, though two of the next four quarters are anticipated to see decreases due to the cyclical nature of the semiconductor industry. Its forward P/E of 37.2 is above its 5-year average of 33, signaling potential overvaluation. The company has a strong moat in EUV technology and has consistently increased prices. While it has performed share buybacks, these have currently stopped. The company's growth numbers highlight its cyclicality, with projected revenue growth of 9-10% and EPS growth of 17% over the next five years. The intrinsic value derived from the DCF model is $909, suggesting a 9% downside, with a 12% growth rate indicating a 10% premium at current prices, and Wall Street projecting an 8% downside.

Netflix is under scrutiny due to an anti-woke cancel boycott, even encouraged by Elon Musk. Despite this, the company has performed strongly, up 70% in the last year and over 1,000% in the last decade, trading near its 52-week high. Its forward P/E of 44.2 is above its 5-year average of 41, indicating a 10% premium. The earnings report, due recently, will show the impact of the boycott. Netflix boasts 100% performance against analyst targets and projected double-digit growth. Revenue was up 16% in the latest quarter, with strong margin improvements. Despite price increases, its churn rate remains low at 2.1%, showing price inelasticity. Streaming is growing, with Netflix as the second most-streamed platform. The valuation is decreasing as profitability increases, with strong free cash flow. While revenue growth is consistent, EPS growth is slower than historical rates. The intrinsic value is $730, highlighting a 63% premium at current prices based on a 15% growth rate, though Wall Street sees an 18% upside.

Costco has been in a downward trend, down 5% over the last year, trading near its 52-week low. It has one 'buy' rating from Wall Street. Upcoming earnings are expected to show 75% growth over the next four quarters in terms of track record, but the forward P/E is very high at 46, well above its 5-year average of 39.4, confirmed by valuation tools. It rarely trades at an undervalued level. Recent quarterly revenue was up 8%, with minimal margin efficiencies. Its valuation shows a 187% richer forward P/E than the sector and a 46% premium on price-to-earnings growth compared to its 5-year average. Growth metrics are rated 'F', with revenue and EPS growth below its 5-year average. Costco has successfully increased sales per warehouse and member numbers, but comparable sales growth has declined, potentially impacting future earnings. The intrinsic value is $829, with a 15% growth rate, suggesting a 10% premium today. Wall Street sees a 19% upside.

Apple is up 16% over the last year and trading near its all-time high, with only a weak 'buy' rating from Wall Street. Earnings are due soon, with anticipation for EPS growth, though the current valuation already accounts for this. Its forward P/E of 33.3 is above its 5-year average of 28. The company consistently trades at a significant premium, and its growth rates do not substantiate this valuation. Revenue growth is projected at 5-6%, below the sector and its own 5-year average, and EPS growth of 10% is also below the sector and historical rates. While iPhone revenue saw double-digit growth in the last quarter, overall efficiencies were not noted. The intrinsic value remains at $200, based on an 8% growth rate, indicating a 28% premium at today's price. Wall Street projects minimal upside of 2%.

Palantir recently experienced a dip due to security concerns but is on a tremendous run, up 368% over the last year and trading near all-time highs of $190. Analysts rate it a 'hold'. Its forward valuation is extremely high with a P/E of 284 and a PEG of 8, signifying a premium of 345% to the sector, and even higher on a price-to-cash flow basis (1,218% premium). Earnings are expected to show strong double-digit growth with a 100% track record for EPS. The growth rates are high (39% last year, 36% expected), but EPS growth is projected to be slower than its historical rate. Revenue grew 48% year-on-year, with significant improvements in operating and bottom-line margins. Bidding growth was 57% year-on-year, and new contracts suggest continued momentum. Despite strong growth, the intrinsic value is $9.528, based on a 35% growth rate, suggesting a 91% premium at current pricing, even with a high growth projection. Wall Street sees a 15% downside.