2 Beaten-Down Stocks That Still Aren't Worth Buying
President Trump's trade policies are sending many stocks that were performing well in the wrong direction and exacerbating things for others that were already struggling. So, the time seems ripe for investors to look for bargains.However, not every beaten-down stock is worth investing in -- many look more like value traps than anything else, no matter how low their share prices have fallen. Consider two examples: Tilray (NASDAQ: TLRY) and Novavax (NASDAQ: NVAX). Both companies are trading well below $10 due to issues that predate the current uncertain economic environment, and neither seems particularly attractive for long-term investors, even at current levels. Here's the rundown.Tilray's shares have dropped significantly this year and are worth about 58 cents apiece as of this writing. The company's struggles predate whatever is happening in the current market. Tilray, a leader in the cannabis industry, has reported poor financial results with inconsistent organic revenue growth (much of its sales growth has been from acquisitions) and persistent net losses over the past five years.Continue reading
President Trump's trade policies are sending many stocks that were performing well in the wrong direction and exacerbating things for others that were already struggling. So, the time seems ripe for investors to look for bargains.
However, not every beaten-down stock is worth investing in -- many look more like value traps than anything else, no matter how low their share prices have fallen. Consider two examples: Tilray (NASDAQ: TLRY) and Novavax (NASDAQ: NVAX). Both companies are trading well below $10 due to issues that predate the current uncertain economic environment, and neither seems particularly attractive for long-term investors, even at current levels. Here's the rundown.
Tilray's shares have dropped significantly this year and are worth about 58 cents apiece as of this writing. The company's struggles predate whatever is happening in the current market. Tilray, a leader in the cannabis industry, has reported poor financial results with inconsistent organic revenue growth (much of its sales growth has been from acquisitions) and persistent net losses over the past five years.