Welcome to Episode #435 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to look at 5 red hot momentum stocks that have gone on sale in the recent stock market sell-off.
Stocks are the one thing that most people don’t buy when they get cheaper. But maybe it’s time to look to see if these stocks are deals, or if there is something behind the sell-off, and they are traps.
5 Hot Stocks on Sale: Deals or Traps?
1. Wingstop Inc. (WING)
Wingstop has been one of the best performing restaurant stocks of the last 5 years. But over the last 6 months, the stock has pulled back off its highs. Wingstop is down 22% in just the last month.
Wingstop has been growing earnings in the double digits the last few years but in 2025, analysts are looking for the single digits.
Is this a buying opportunity in Wingstop or is it a trap?
2. e.l.f. Beauty, Inc. (ELF)
e.l.f. Beauty was a big winner in the beauty industry the last few years. But shares have plunged off their 2024 highs and are now down 52% in the last 6 months. e.l.f. Beauty is cheaper than last year, on a price-to-earnings (P/E) basis, with a forward P/E of 21.6. It is also expected to see double digit sales growth in both fiscal 2025 and fiscal 2026.
Should e.l.f. Beauty be on your short list?
3. Palantir Technologies Inc. (PLTR)
Palantir Technologies has been one of the hottest stocks on the Street. It’s up 188% over the last 6 months. But over the last 5 days, the shares have fallen 16%. Palantir isn’t cheap. It trades with a forward P/E of 165.
Earnings are expected to rise 31.7%. Palantir is a Zacks Rank #2 (Buy) stock.
Is this a buying opportunity in Palantir?
4. Walmart Inc. (WMT)
Walmart hit new all-time highs in 2025 before its fourth quarter 2024 earnings report. But shares fell about 10% after the report on worries over tariffs. However, the shares have rebounded and are now up just 0.2% in the last 5 days.
Walmart isn’t cheap. It trades with a forward P/E of 36.
Is there still time to get into Walmart?
5. Vertiv Holdings Co. (VRT)
Vertiv makes racks for data centers. It is an AI infrastructure play. Shares of Vertiv soared the last 2 years on the AI revolution. But recently, Vertiv plunged on fears that the AI growth might be slowing. Shares had fallen as much as 38% in the last month, but are now down 8.6%.
Vertiv is expected to grow its earnings by 26% this year. It is a Zacks Rank #2 (Buy) stock.
Is Vertiv a buy, or is it a trap, on this weakness?
What Else Do You Need to Know About Stocks on Sale?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of VRT in her personal portfolio and in Zacks Value Investor.]
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Walmart Inc. (WMT) : Free Stock Analysis Report
Wingstop Inc. (WING) : Free Stock Analysis Report
e.l.f. Beauty (ELF) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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