2 Beaten-Down Stocks Near Their 52-Week Lows That Aren't Worth Buying

Group 1: Tilray Brands - Tilray Brands is a leader in the cannabis market, but the industry has been underperforming in recent years [3] - The legal landscape remains unfavorable, with federal prohibition in the U.S. and challenges in Canada such as stringent licensing, oversupply, and competition from illicit markets [4] - The company's financial results are poor, with revenue growth primarily from acquisitions and ongoing unprofitability [5] - Despite diversifying into the U.S. craft brewing market, Tilray's future relies heavily on the legalization of recreational cannabis in the U.S., which may come with regulatory challenges [6][7] - Historical performance indicates that even with potential legalization, Tilray's prospects remain bleak, making it unattractive for investment [9] Group 2: Novavax - Novavax's shares have significantly declined over the past three years, nearing their 52-week low of $3.81 [10] - Initially a strong contender in the COVID-19 vaccine market, Novavax fell behind competitors like Moderna and Pfizer/BioNTech [11] - A deal with Sanofi provided Novavax with $500 million upfront and potential milestone payments, temporarily boosting its stock [12] - Despite this, Novavax must still develop and market its own products, facing regulatory setbacks that highlight its high-risk nature [14] - The crowded flu vaccine market poses additional challenges, with mRNA candidates likely to dominate, making Novavax's offerings less attractive [15][16]