2 Beaten-Down Stocks That Still Aren't Worth Buying
Yahoo Finance ·
Buying shares of excellent companies that have fallen out of favor is a great way to earn superior returns over the long run. However, investors should be careful not to catch a falling knife. Corporations often fail to keep up with broader equities for good reasons, and in many cases, it's not worth investing in market laggards, even on the dip. With that as a backdrop, let's consider two stocks that have moved in the wrong direction this year but remain unattractive at their current levels: Recursion Pharmaceuticals ( RXRX 5.32% ) and Sarepta Therapeutics ( SRPT 7.65% ) . Recursion Pharmaceuticals is a drugmaker that relies on artificial intelligence (AI) to go from discovery to the market. The company is betting that its approach can succeed where other breakthroughs have failed: Even with significant technological progress over the past few decades, the cost and time required to develop drugs have increased. Recursion Pharmaceuticals uses an AI-powered algorithm to predict which candidates are the most likely to perform well in clinical trials and, eventually, earn approval. To its credit, the company has several promising products in its pipeline. For instance, Recursion Pharmaceuticals' REC-4881 is an investigational medicine for familial adenomatous polyposis (FAP), a rare disorder that leads to the development of precancerous polyps in the colon and rectum, giving patients a very high risk of colorectal cancer if left untreated. REC-4881 has demonstrated encouraging reductions in precancerous polyp burden in early clinical studies. Given that the U.S. Food and Drug Administration has never approved any medicine for FAP, REC-4881 could present an attractive commercial opportunity if it proves effective in late-stage clinical trials.
DYAX Investor Sentiment
Bullish (Long) 38% · Bearish (Short) 62%
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