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Image: Bigstock featured highlights include: HealthEquity, NeoGenomics, Howard Hughes Corp and StoneCo

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For Immediate Release

Chicago, IL – May 12, 2021 – Stocks in this week’s article are HealthEquity, Inc. (HQY - Free Report) , NeoGenomics Inc. (NEO - Free Report) , The Howard Hughes Corp. (HHC - Free Report) and StoneCo Ltd. (STNE - Free Report) .

Don't Let These 4 Toxic Stocks Erode Your Wealth

Investment in a stock with valuation above its true potential is bound to translate to loss over time. Overvaluation implies that the current price of the stock is not justified by its business conditions and therefore, a decline in price is inevitable.

A stock becomes overpriced due to irrational exuberance associated with it or some serious weakness in the company’s fundamentals. As a result, owning these stocks could lead to erosion of wealth for an investor.

Investors who can identify toxic stocks can actually gain even in a bear market by resorting to an investing technique called short selling.

In short selling, one can sell an un-owned stock and then purchase it when the price falls. Naturally, short selling has excelled in bear markets, while it typically loses money in bull markets.

So, just like selecting good stocks, identifying toxic stocks is also crucial in shielding one's portfolio from massive losses or making profits by short selling them.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Strong Stocks that Should Be in the News

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

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