Union Pacific is a sell as it trades at a premium multiple for low single-digit growth, and it's better to wait for an undervaluation signal.
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8 Stocks to Sell Before It’s Too Late
Feb 20, 2026
The creator discusses a rotation into defensive stocks like healthcare, energy, and consumer staples, noting that many of these names, including Johnson & Johnson and Coca-Cola, are trading at stretched valuations. Concerns are also raised about traditional software business models due to AI's potential to lower software creation costs. The video will also analyze three beaten-down stocks: Palo Alto Networks, Zscaler, and Booking Holdings, to determine if they are traps or opportunities.
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Tickers discussed in this post
Lockheed Martin is a sell due to overvaluation after a strong run, with fair value stagnating and Wall Street expecting downside.
Coca-Cola's strong year-to-date performance and defensive nature suggest potential overvaluation.
Booking Holdings has been heavily impacted by recent market movements and earnings.
Zscaler is identified as a high-quality name that has experienced a significant sell-off post-earnings.
Palo Alto Networks is mentioned as a high-quality name that has been beaten down after earnings.
While AI infrastructure and semiconductors are holding up, traditional software business models face challenges.
Johnson & Johnson is trading at a historically high valuation, suggesting overvaluation.