Avoid These 2 Overvalued Stocks

In this video from Tuesday's edition of MarketFoolery, host Chris Hill and Fool analysts Mike Olsen and Matt Koppenheffer take a deep dive into today's biggest market news.

With the market reaching unprecedented levels recently, have stocks become overvalued? In this segment, Matt and Mike each pick a stock they think has run up a bit further than the business actually supports. Matt looks at one banking stock that may be on the verge of disrupting the industry, while Mike dives into a big-name, high-fashion retail stock.

The future of retail
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.


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  • Report this Comment On December 18, 2013, at 9:12 AM, upndn wrote:

    Over valued, humm, how about The Container Store, Noodles Co., Pot Belly, and dare I say TSLA.

    I'm looking forward to the first TCS earnings report.

    I imagine the underwriter analysts have low balled the estimates.

  • Report this Comment On December 23, 2013, at 12:56 PM, LAVol wrote:

    Be careful with BWP. The dynamic of natural gas flows is changing dramatically. According to BWP, gas discoveries in Ohio and Pennsylvania will result in gas flowing from those areas back to the Gulf Coast. This, on the surface, negatively affects BWP because BWP has operated as a header for Gulf Coast production, delivering gas to the pipes serving the NE (Transco, Texas Eastern, Columbia). That won't happen when gas supplies in the Marcellus and Uttica replace Gulf Coast production. Could BWP find a way to take advantage of the change? Maybe, but I wouldn't bet on it. Additionally, BWP is alienating customers (shippers) and it could be out of desperation. Furthermore, having dealt with BWP management for several years, I would not rate their management team as among the best in the industry--quite the contrary, I consider them very weak at every level. I owned BWP several years ago and sold my position when BWP started alienating shippers and I formed a negative opinion of their management team. I would not advise anyone to buy now.

    --A Motley Fool subscriber and former natural gas exec.

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