Buying a stock when it is on the dip might sound a bit crazy, but it’s the best strategy to lock in a lower price for the investment.
If the underlying business is solid and has space for more growth and innovation, then a handful of underperforming stocks can be a source of long-term investments.
The big question is how to find underperforming growth with future potential? Well, here’s a list of the best underperforming stocks to buy in April with solid reasons:
These best 3 underperforming stocks that you can buy in April could be a good investment for your future. The deal is to act fast because if the sell-off isn’t due to company struggles, declines might not last as long as you expected.
1. Teladoc (TDOC)
Teladoc health was one of the clear-cut beneficiaries of the pandemic year and reaped a good amount of value and profit last year. But in February, its shares crashed down around 16% and were having a rough patch during the month. This was not a reason to completely dump the stock. Because its latest earning results were still not released and were on hold until the end of the month.
It was worth the wait as the earning report that came out on February 24 was fair to middling. Teladoc’s fourth-quarter revenue of $383.3 million was up by 145% concerning the previous year’s period. In addition to this, the number of telehealth visits topped 3 million, adding to an increase of 139% year over year. The management expects a rise in both revenue and visits in the next quarter. Revenue hitting an estimated $455 million and visits soaring to a range of 2.9 million 3.1 million is the estimate.
In reality, the company is still not profitable. But foreseeing its growth with its acquisition of the digital diabetes management company Livongo Health and the increasing demand for telehealth is a chink of hope. With all this in the pipeline, it seems that the stock still looks poised for more gains and is one of the best underperforming stocks to buy in April.
2. Barrick Gold (GOLD)
Barrick Gold is yet another company which despite its growth potential, is undervalued. This gold-mining company released its fourth-quarter results on February 18. The sales for the period ending December 2020, was $3.3 billion. There happened a great boost of its free cash flow from $429 million a year ago to $1.1 billion this past quarter. This boost resulted from a higher realized price per pound of gold, and GOLD highly benefited from it.
A big positive for Barrick Gold was its raising revenue and margin during the uncertain times of pandemic. It is a business that swims in plenty of cash and thus is proposing to return some capital to its shareholders. Though the price of gold is falling along with the waves of the pandemic, GOLD is still above $1,700 per ounce and higher compared to the previous year making it one of the best underperforming stocks to buy in April.
At the current level, investors can have an optimistic view of the stock’s potential growth and can be considered as a solid long-term investment. This giant gold miner can be your real gold miner for the future if you have plans to invest in it now.
3. Beyond Meat (BYND)
Among these 3 underperforming stocks, Beyond Meat has seen the worst decline, as its shares fell more than 18% in February. Since its initiation, the company was one of the best leaders of plant-based meat products. Even after the release of the quarterly results, the number was not as stirring as before.
The global pandemic and those uncertain times caused a decline in demand from its foodservice channels, creating unnecessary confusion about its growth.
But there’s a solid reason why we added Beyond Meat to our list of best underperforming stocks to buy in April. Apart from all this gloominess, Beyond Meat has recently announced its deal with the giant McDonald’s, which is promising. Under an agreement of 3 years, Beyond Meat will be the preferred supplier of McPlant, the new plant-based burger of McDonald’s. Thinking beyond time, even if the impact of COVID-19 lasts longer, fast food chains like McDonald’s will never be affected.
This is hope for Beyond to grow further and boosts their revenue. As the vaccines are on their way, bringing hope for a healthy normal tomorrow, the stock BYND has more growth opportunities for the coming years. Investing in this stock now could be a great move that you make towards a secured future.
Despite their sharp declines and loss of sales, these three stocks are worth a shot. They are poised for more potential growth, which makes them the best-underperformed stocks to buy in April. If you have plans for a long-term investment, then what’s the wait, do your research, choose your stock and get ready to lounge into your wealthy future.
eToro - Buy stocks with 0% Commission
eToro have proven themselves trustworthy within the stock market over many years – we recommend you try them out.
Your capital is at risk. Other fees may apply