Proceed With Caution When Considering These 5 Ultra-Popular Stocks

Investing is all about taking risks in exchange for the potential reward of a high return. However, some stocks have a very skewed risk-return profile. Everything would have to go right for the company to deliver the returns investors expect.

Many very popular stocks currently fall into this category.  (NYSE: CCL)Medical Properties Trust (NYSE: MPW)Nvidia (NASDAQ: NVDA)Rivian Automotive (NASDAQ: RIVN), and Lucid Group (NASDAQ: LCID) are five uber-popular stocks that investors need to approach with caution, given their skewed risk-reward profiles.

Shares of Carnival have rocketed nearly 90% so far this year. Driving the cruise ship stock's rally is growing optimism about the industry's recovery. However, the company faces two potential headwinds that could sink its stock in the future. While demand is robust right now, several indicators suggest a recession could be right around the corner. That could cool off demand for cruising as the economic uncertainty might lead people to hold off on booking vacations.

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Source Fool.com