These 3 Stocks Have Underperformed the Market This Year. Is Now the Time to Buy?
This year has been a trying time for growth investors, as a wide swath of growth stocks has taken a sharp tumble. The Nasdaq Composite Index is down nearly 28% year to date, plunging the bellwether technology stock index into its second bear market since 2020. While the Federal Reserve's recent interest rate hike of 0.5% -- the sharpest increase in the last 22 years -- was the immediate trigger, the four-decade high inflation and the monthslong global supply-chain issues have been the real culprits behind the slowing economy.
Specifically, many stocks fared much worse than the index as investors took a risk-averse approach -- sell first and ask questions later. However, I believe throwing the baby out with the bathwater is not the correct approach. Some businesses have been unfairly penalized by the market for reporting slower growth rates even as the pandemic eases. Others have seen valuations plummet as investors eschew high-growth stocks in favor of stalwarts and dividend-paying ones.
Such pessimism may create attractive bargains for investors who are willing to look past the stock declines to get to the heart of the business. Here are three stocks that performed worse than the market but could constitute an opportunity for you to load up on for long-term capital appreciation.
Source Fool.com