2023-07-02 08:25:00 ET
The best time to buy a stock is often when it's been left for dead. In some cases, pessimism can drive down a stock so much that anything short of disaster can lead to solid long-term returns for investors.
One beaten-down stock that looks like it could fall into this category is Sonos (NASDAQ: SONO) . Demand for the company's speakers has slumped, but the long-term growth story is still intact. Wayfair (NYSE: W) is a different story, and while it can be tempting to jump in at a depressed price, there's not a lot to like about the online furniture seller.
Shares of connected home audio specialist Sonos have taken a beating over the past few months. The stock tumbled in May following a quarterly report that beat analysts' expectations but featured lackluster guidance. Sonos is suffering from weak demand for its pricey speakers and home theater equipment amid a tough economic environment.
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1 Beaten-Down Stock to Buy and 1 to Avoid