Stocks At All Time Lows - 5 Companies To Consider in 2024

Written By Ben Broadwater

Posted March 5, 2024

Investing in the stock market can be a profitable venture, but it’s not without its risks. One of the most challenging situations is when investors are considering stocks at all time lows. There are many risks and opportunities associated with low-priced stocks and strategies to navigate through these challenging times.

stocks at all time lows

What To Know When Buying Stocks At All Time Lows

Buying stocks at a low price can be appealing because of the potential for greater returns if the stock price increases in the future. This is based on the “buy low, sell high” principle, a fundamental concept of investing.

Here are some potential benefits of buying stocks at a low:

  • Higher potential return on investment (ROI): If the stock price rebounds and rises significantly, you could see a larger percentage return on your investment compared to buying at a higher price.
  • Value investing: The idea is that if a stock’s price falls below its intrinsic value (the company’s true underlying value), it presents a buying opportunity. You believe the stock is currently undervalued and has the potential to reach its fair value in the future.

However, it’s crucial to understand that buying stocks at a low price also comes with significant risks:

  • No guarantee of future price increase: There’s no guarantee that the stock price will rebound. It’s possible for the price to continue to decline, resulting in a loss on your investment.
  • Increased volatility: Lower-priced stocks often exhibithigher volatility, meaning their prices can fluctuate more significantly than established, higher-priced companies. This can lead to greater risk and potential losses.
  • Company fundamentals: It’s vital to analyze the underlying reasons behind the low stock price. Is it due to temporary market conditions, or are there fundamental problems with the company’s business model, finances, or leadership?

Here are some important things to remember before buying any stock, especially at a low price:

  • Conduct thorough research: Understand the company’s business, financials, and competitive landscape.
  • Consider your risk tolerance: Are you comfortable with the potential for significant losses?
  • Invest for the long term: Don’t expect to get rich quick.
  • Diversify your portfolio: Don’t put all your eggs in one basket. Spread your investments across different asset classes andindustries to mitigate risk.

5 Stocks At All Time Lows

Stock Information and Potential Reasons for Low Prices:

1. Aurora Cannabis Inc (NASDAQ: ACB)

stocks at all time lows - ACB stock chart

  • Industry: Cannabis production and distribution

Potential reasons for low stock price:

  • Missed profit expectations: Despite strong initial growth after Canadian legalization in 2018, Aurora Cannabis has struggled to turn a profit consistently. This has led to investor disappointment and decreased confidence.
  • Increased competition: The Canadian cannabis market is becoming increasingly saturated with producers, making it difficult for Aurora to maintain market share and pricing power.
  • High debt: The company has a significant amount of debt, which limits its ability to invest in growth and profitability initiatives.
  • Nasdaq delisting risk: The stock recently fell below the minimum bid price requirement on the Nasdaq and could be delisted if it doesn’t regain compliance.

Check Out Our 5 Top Paying Marijuana Dividend Stocks

2. Bumble Inc (NASDAQ: BMBL)

BMBL stock chart

  • Industry: Online dating platforms

Potential reasons for low stock price:

  • Broad market sell-off: The overall stock market has been experiencing a correction in 2023, which has impacted growth stocks like Bumble.
  • Increased competition: Dating app companies like Tinder and Match Group are fierce competitors, making it difficult for Bumble to maintain its user base and growth.
  • Disappointing user growth: The company’s recent user growth figures have fallen short of analyst expectations, leading to concerns about its future potential.

3. Brenmiller Energy Ltd (NASDAQ: BNRG)

stocks at all time lows - BNRG stock chart

  • Industry: Oilfield services

Potential reasons for low stock price:

  • Shift towards renewable energy: The global transition towards renewable energy sources has led to a decline in demand for oil and gas, impacting companies like Brenmiller that service the industry.
  • Financial difficulties: The company has struggled financially in recent years, incurring significant losses and facing challenges with debt.
  • Limited market share: Brenmiller is a relatively small player in the oilfield services industry, making it vulnerable to competition and fluctuations in energy prices.

4. Canopy Growth Corp (NASDAQ: CGC)

CGC stock chart

  • Industry: Cannabis production and distribution

Potential reasons for low stock price:

  • Similar reasons as Aurora Cannabis: Canopy Growth also faces issues like missed profit expectations, increased competition, and high debt.
  • Slow rollout of US cannabis market: The company was hoping to enter the US market upon federal legalization, but the delay continues to dampen investor enthusiasm.
  • Shift towards recreational market: While Canopy has a strong presence in the medical cannabis market, the recreational market is growing faster, and Canopy might be lagging behind.

5. Eventbrite Inc (NYSE: EB)

stocks at all time lows - EB

  • Industry: Event ticketing and management platform

Potential reasons for low stock price:

  • Impact of COVID-19: The pandemic significantly impacted the event industry, leading to a decline in Eventbrite’s revenue and user base.
  • Increased competition: Eventbrite faces competition from established players in the ticketing space and new entrants offering digital event management solutions.
  • Uncertainty in event recovery: The future of the event industry remains uncertain, with ongoing concerns about potential economic downturns and new COVID-19 variants.

Stocks At All Time Lows – Final Thoughts

Remember, buying stocks at all time lows is not a guaranteed path to success. It’s crucial to weigh the potential benefits and risks carefully before making any investment decisions.

By staying informed, conducting thorough research, and adopting proven investment strategies, investors can make informed decisions and potentially turn challenging market conditions into profitable opportunities.

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