2 Beaten-Down Stocks That Still Aren't Worth Buying

It's often omniscient to hold until a important correction earlier investing successful a stock. However, that strategy lone works erstwhile the institution tin retrieve from immoderate obstacle led to the sell-off. When that's not the case, investing successful a beaten-down banal is similar catching the proverbial falling knife. That said, let's see 2 stocks that person mislaid important marketplace worth successful caller years but inactive aren't worthy the trouble: Canopy Growth (NASDAQ: CGC) and Sarepta Therapeutics (NASDAQ: SRPT).

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Canopy Growth has been a unspeakable banal to ain implicit the past 5 years. Things aren't looking up for the cookware grower, and investors who inactive clasp its shares had amended wantonness vessel and salvage what they tin earlier it's excessively late. Here are 2 reasons the cannabis company's prospects aren't good. First, its fiscal results stay subpar, adjacent erstwhile Canopy Growth performs amended than expected.

That was the lawsuit during its latest period, the 3rd 4th of its fiscal twelvemonth 2026, ending connected Dec. 31. Canopy Growth's nett gross remained level twelvemonth implicit year, landing astatine 75 cardinal Canadian dollars ($54.6 million). The bottommost enactment improved by 49%, but Canopy Growth is inactive bleeding money, reporting a nett nonaccomplishment per stock of CA$0.18 ($0.13) during the period.

Some mightiness deliberation that, since things look to beryllium improving for Canopy Growth connected the bottommost line, the banal is worthy a 2nd look. But -- and here's our 2nd crushed to enactment distant from the banal -- the cannabis manufacture remains a highly regulated, challenging-to-navigate quagmire whose aboriginal is, astatine best, uncertain. Will the U.S. yet legalize weed astatine the national level?

If it does, what caller rules volition it follow for consumers and distributors? How volition companies successful adjacent industries respond? These and galore different questions are intolerable to reply for now. The cannabis market's challenges are a large crushed it's pugnacious to find a azygous cookware institution that hasn't performed terribly implicit the past 5 years. Things are not astir to get better. It's champion to debar Canopy Growth on with the full sector.

Sarepta Therapeutics has faced headwinds arsenic its astir important medicine, Elevidys, which treats a uncommon illness called Duchenne muscular dystrophy (DMD, a rare, progressive, muscle-wasting disorder), caused the decease of 2 patients owed to liver failure. The institution has worked hard to remedy the situation, notably by adding an due boxed informing and suspending shipments to the astir susceptible populations.