Is It Time to Buy the S&P 500's 4 Worst-Performing July Stocks?

Usually, the biggest losers for any given month end up being a hodgepodge of different companies. This is not one of those times. July's worst-performing names among the S&P 500 (SNPINDEX: ^GSPC) constituents were Las Vegas Sands (NYSE: LVS), Wynn Resorts (NASDAQ: WYNN), Norwegian Cruise Line Holdings (NYSE: NCLH), and Carnival Corporation (NYSE: CCL). The commonality is clear. All are tourism plays, but more to the point right now, these companies have the most to lose if the recent increase in COVID-19 cases worsens. In this light, last month's steep sell-offs make a lot of sense.

Veteran investors know the time to step into quality stocks is when they've been needlessly beaten down, but sometimes, stocks are upended for all the right reasons. It's not always easy to determine which is which, and this is one of those tricky times.

The sell-offs last month were steep. Carnival shares fell 17.9% with rival Norwegian Cruise Line seeing its shares slide 18.3%. Wynn Resorts stock fell 19.6%, matching the loss logged by Las Vegas Sands. In all four cases, the selling simply extended pullbacks that first started taking shape in June.

Source Fool.com