The future of the United States economy appears surprisingly resilient, as evidenced by positive trends in labor force participation, inflation and wages. Despite earlier concerns of long-term scars, the nation has shown remarkable recovery, challenging prevailing pessimism. While challenges persist, the overall state of the economy and society seems more favorable than anticipated. Because of this news, get out of your over-valued positions that are up more than 500% and diversify. Drop these three stocks to sell and maximize profits elsewhere.

Carvana Co. (CVNA)

Source: Ken Wolter / Shutterstock.com

Carvana Co. is an online used-car retailer. It is an early mover into the online car retail space and is a household name. However, there are many underlying issues with this company.

Carvana was up 1043.41% in 2023. However, its financials aren’t strong enough to justify its evaluation. While it has consistently beat earnings estimates, Carvana has an EBITDA of $-153 million. It carries a debt of $6.44 billion, yet only has $920 million in cash. Along with this, Carvana’s return on equity is -1,268.60%. This indicates a lack of profitability and earning potential.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

It is important to note that Carvana’s business is heavily dependent on extraneous factors: interest rates, the price of new cars and the price of used cars. The Federal Reserve lowering interest rates makes it more viable for consumers to take out car loans, leading to an increased number of new cars sold and thus lowering Carvana’s market base. Additionally, the once-inflated used car market is starting to deflate with prices coming down, impacting Carvana’s profit margin.

The combination of lackluster financials, and increased macroeconomic changes that will prove detrimental to Carvana’s success. It is fair to say that at this moment, it is a stock investors should consider selling.

Jin Medical International (ZJYL)

Source: shutterstock.com/Anastasia Zagoruyko

Jin Medical International Ltd (NASDAQ:ZJYL) is a holding company specializing in designing and manufacturing wheelchairs and living aid products for people with disabilities, the elderly and those recovering from an injury.

Just going public in March 2023, ZJYL, up 3,020.1%, was ranked first among the best-performing stocks in the year 2023 among companies that traded on major U.S. exchanges, and had market capitalizations of at least $1 billion. However, its financials have been questionable, experiencing relatively low growth in the past five years. For instance, its revenue has only increased by 3.93% from $19.19 million in fiscal year 2022 to $19.976 million TTM. Moreover, it has decreased by 4.78% since 2018, falling below average for companies within the medical equipment industry.