Stocks that historically underperform the average returns of the S 500 tend to keep coming up short. Therefore, investors must always remain cautious when buying struggling stocks. Betting on turnarounds often results in losses.

For struggling stocks to succeed, I believe that companies need some things. First, I'd like to see at least some semblance of a competitive advantage. I also want expectations from the market to simply be way too pessimistic. And I want a reasonable explanation for why better days could be ahead.

When asking my followers on social media, PayPal Holdings (NASDAQ: PYPL) came out as the runaway winner for struggling stocks to buy at a discount, and I agree that it has potential. But before we get to PayPal, I want to explain why other ideas like Dollar General (NYSE: DG), Sea Limited (NYSE: SE), Driven Brands (NASDAQ: DRVN), and Advance Auto Parts (NYSE: AAP) all make the cut as well. 

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Source Fool.com