It’s never a good feeling to be caught holding a firm’s shares in freefall, especially as the rest of the market continues rising. We’re in a rather healthy bull market, but the broad stock market rally has left some firms behind. Indeed, selling in a state of heightened fear is almost always a poor idea, especially if you don’t think things through.
If you intend to hold shares over many years, the occasional flop will tempt you to sell out of an entire position or, at the very least, do a bit of trimming. When it comes to recent market laggards, investors should revisit the narrative and fundamentals to determine if anything has changed for the worse. Sometimes, new negatives justify cutting one’s losses or taking what remains of our profits.
Other times, it’s best to do nothing. Perhaps taking no action is the hardest thing to do in a market where you don’t need to look far for winners. Here are three sinking stocks to avoid.
Lululemon (LULU) Lululemon (NASDAQ: LULU ) shareholders are probably feeling the pinch of late, with the stock stretching to the downside by more than 7% during Wednesday’s session. At writing, LULU shares are now below $300, almost 42% below their all-time highs in the back half of December 2023. It would be a massive understatement to say it’s been an awful 2024 for LULU stock.
But is it too late to hit the sell button as the legging maker falls out of fashion with investors? I don’t think it is. Earlier this week, a well-respect.