Is It Time to Buy the S&P 500's 3 Worst Performing February Stocks?
Everybody loves a bargain. In fact, good long-term stocks that have taken a short-term tumble are often said to be "on sale," meaning that low price won't be low for too long.
To this end, a handful of names found in the S&P 500 moved deep into the red last month. While these pullbacks may be piquing people's interest, smart investors know a sell-off doesn't inherently make a stock a buy -- there's got to be a good chance a rebound is in the offing before stepping in. Here's a much-needed closer look.
For the first time in about a year, a round of major stock sell-offs isn't directly related to the COVID-19 pandemic. February's losses instead largely look to be the result of profit-taking on names that were overzealously bought up through January. Simply put, investors were willing to pay a premium for picks seemingly impervious to the adverse impact of the pandemic. With reality setting in and a real recovery on the horizon, though, things are changing.
Source Fool.com
