10 Stocks Down 50%+ Are These Stocks To Buy Now?!

TL;DR

Stocks down 50% or more may deserve further research, but their low prices alone do not make them good buys. The discussion reviews 10 beaten-down stocks as possible starting points, not endorsements, and warns that some could keep falling, stagnate, or never recover over a three-, five-, or seven-year holding period. Read on for the risks highlighted and the detailed Boeing example.

Transcript

well guys welcome into today's a video i have an exciting one planned for you guys here today okay we are going to talk about 10 stocks that are down around 50 or more in the past year i know a lot of you guys love a video like this where we talk about some beating down stocks that everybody's just kicked down and completely forgotten about that's ... Read More

Key Insights

• 🧡 The stocks discussed in the video represent a range of industries, including aviation, hospitality, banking, and cannabis.
• 😘 Low stock prices do not guarantee easy profits, as some stocks may continue to decline or stagnate.
• 💓 Long-term investors should carefully consider the potential risks and rewards of investing in these beaten-down stocks.
• 🪐 Government support and bankruptcy protection may provide a safety net for certain companies.
• 😘 Market conditions, such as low-interest rates, impact the prospects for banking stocks like Wells Fargo.
• 💓 Timing and patience are important factors in investing in beaten-down stocks.
• 👨‍🔬 The video emphasizes the importance of conducting thorough research and due diligence before making investment decisions.

Questions & Answers

Q: Are these 10 stocks down 50% or more worth buying now?

The discussion does not recommend buying all 10 stocks. It presents them as research candidates and suggests that perhaps one, two, or three may warrant a closer look, depending on their risks and prospects.

Q: Does a stock being down 50% make it an easy investment opportunity?

No. A low stock price can sometimes offer a strong long-term opportunity, but a stock may also continue falling, never recover, or stagnate for years.

Q: What holding period does the discussion consider for beaten-down stocks?

The speaker evaluates these opportunities from a long-term perspective, referring to periods of three, five, or seven years. He warns that holding a stagnant stock for that long can carry a substantial opportunity cost because other stocks may perform better.

Q: Why was Boeing included among the beaten-down stocks?

Boeing, ticker symbol BA, had fallen from a 52-week high of $386 to $151. The discussion says this decline placed it well beyond the roughly 50%-down threshold used for the list.

Q: What risks were identified for Boeing's commercial aircraft business?

Airlines were focused on avoiding bankruptcy rather than ordering billions of dollars in new airplanes. The speaker therefore expected aircraft orders to remain weak for at least the next couple of years and possibly three or four years.

Q: What challenge was identified for Boeing's defense business?

The speaker viewed Boeing's defense-contracting business as another short-term concern. He questioned whether a government already running major deficits would want to order many expensive fighter jets while the country was not at war.

Q: Why might long-term investors still examine stocks near their lows?

The speaker says beaten-down markets can create better deals, which long-term and value investors may appreciate. However, each company still requires research because some low-priced stocks will not recover or produce worthwhile returns.

Q: How deeply does the discussion analyze each of the 10 companies?

It provides only a brief overview of each company rather than a deep analysis. The purpose is to help viewers identify stocks they may want to research further before deciding whether to invest.

Summary & Key Takeaways

• The video highlights 10 stocks that are down 50% or more in the past year, emphasizing that this does not constitute an endorsement but rather an exploration of potential investment opportunities.

• It discusses the specific challenges and prospects of each stock, including Boeing's current struggles due to reduced demand for planes, the impact of COVID-19 on companies like Cheesecake Factory and Royal Caribbean, and the risks and potential rewards of investing in companies like Wells Fargo, ACB, and Nikola.