Is This Distressed Growth Stock About to Make a Comeback?
If you have the guts for it, buying a stock that other investors scorn can be a great way to pick up shares of companies with good bones at a steep bargain. If fortunes turn, you'll get to be the proud contrarian who saw the true potential of the business as a bonus -- assuming that its fortunes do turn.
After crashing by more than 80% over the last year, it isn't a stretch to say that GoodRx's (NASDAQ: GDRX) stock is a beaten-down shadow of its former self. In case you aren't up to speed, the company helps people save money on prescription medications.
GoodRx is a growth-stage business, and fixing the healthcare system's prescription drug inefficiencies is the main component of its business model. It accomplishes this by negotiating with pharmacy benefit managers (PBMs) and pharmaceutical drug manufacturers and reducing the inefficiencies that drive up their costs -- pricing potential customers out of the market. Then, the company takes a cut of the savings it passes on to patients.
Source Fool.com
