1 Beaten-Down Stock to Buy and 1 to Avoid Like the Plague
Sometimes it is worth it to buy shares of companies on the dip, and sometimes it isn't. It all depends on whether there are good reasons to believe the company in question will bounce back, and if it will, there is arguably no better time to invest than when it is down.
Thankfully, even in a bull market like the one we're experiencing, you can find beaten-down but otherwise exciting stocks to buy. However, other market laggards are better left alone. Let's consider one stock in each category: Teladoc Health (NYSE: TDOC) and (NASDAQ: NVAX).
Teladoc is a leader in the telemedicine market, but its position in this industry has not helped it get back in the good graces of investors. The company has recorded sub-par financial results for a while, with slowing top-line growth and persistent net losses. Teladoc rode a pandemic-related tailwind when its business became much more popular amid the outbreak, but things have cooled down. Last year, Teladoc's revenue increased by just 8% year over year to $2.6 billion.
Source Fool.com
