FLGT - 2 Unsustainable Growth Stocks to Avoid
In a perfect world, companies classified as growth stocks would steadily improve their sales and earnings year after year, making no amount too expensive for their stock price. However, what ends up happening is that such companies often lose their trajectory due to a changing market or a one-time opportunity that quickly dissipates.
Such forward-looking risks aren't really present in past financial data, so many investors are surprised once a growth stock's sales fall off a cliff. Two such companies that are currently facing this potential future are Coinbase (NASDAQ: COIN) and Fulgent Genetics (NASDAQ: FLGT) . Let's look at why it's in your best interest to avoid them for the time being.
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2 Unsustainable Growth Stocks to Avoid