Stock market indexes like the S&P 500 and the Nasdaq are trading within about 2% of all-time highs as of this writing. But just because the market averages remain strong, that doesn't mean everything is doing well. In fact, many stocks trade well below their 52-week highs, including Zoom Video Communications (NASDAQ: ZM) , Peloton Interactive (NASDAQ: PTON) , and Magnite (NASDAQ: MGNI) .
All three of these stocks were big winners in 2020, up 396%, 434%, and 276%, respectively. As we'll see, there are good reasons to buy and hold these past winners, but all three companies are down around 40% from their 52-week highs as investors abandon their long-term theses. Here's why giving up on these stocks so soon is a big mistake.
Image source: Zoom Video Communications.
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Wall Street Is Giving Up on These 3 Stocks, and That's a Huge Mistake