3 Once-Promising Growth Stocks That Are Down 40% Since the 2020 Crash -- Can Any of Them Recover?

Ladies and gentlemen, buckle up! We're diving into the world of stocks that once had investors drooling but now have them scratching their heads. We're talking about Tilray Brands, Walgreens Boots Alliance, and Plug Power—three stocks that have taken a nosedive since the 2020 market crash. Let's see if any of these can make a comeback!



Tilray Brands: The Marijuana Misfire

Tilray Brands, the Canadian marijuana producer, was once the darling of the growth stock world. Investors were betting big on federal legalization in the U.S., which would have opened up a massive market. But here we are, five years later, and Tilray's stock has plummeted by a staggering 80%! The lack of federal legalization has been a massive blow, and the company's financials are a mess—$249 million in losses over the trailing 12 months on revenue of $829 million. Tilray has tried to diversify by buying up alcohol brands, but it's not enough to turn things around. The outlook for marijuana legalization remains bleak, and investors are left holding the bag.

Walgreens Boots Alliance: The Pharmacy Plunge

Walgreens Boots Alliance saw a brief boost during the pandemic, offering vaccines and essential services. But that boost didn't last. The company struggled to turn a profit despite plans to launch medical clinics across the U.S. Changing consumer behavior, with more flexible shopping options, has hit Walgreens hard. Now, the company is in the midst of a turnaround under new CEO Tim Wentworth, but the road ahead is long and uncertain. To make matters worse, Sycamore Partners is buying the company for $10 billion, taking it private. The stock is trading around that valuation, so there's little upside for investors. If the deal falls through, it could be disastrous for the stock. Walgreens' stock has declined by 75% since the 2020 market crash, and the future looks grim.

Plug Power: The Hydrogen Hype

Plug Power was supposed to be the next big thing in clean energy, betting on hydrogen as the fuel of the future. But hydrogen energy hasn't taken off, and there are serious doubts about whether it's a better option than batteries for vehicles. Plug Power has been hemorrhaging money, with a net loss of $2.1 billion in 2024 and nearly $1.4 billion the year before. The company is burning through cash, and there's no end in sight. Investors are taking a big risk with Plug Power stock today, and the financial picture is troubling. Plug Power's stock has declined by 40% since the 2020 market crash, and the outlook is far from rosy.

Can Any of Them Recover?

Let's break it down:

1. Tilray Brands: The only hope for Tilray is federal legalization of marijuana in the U.S. But with Republicans in control, that's not happening anytime soon. Tilray's diversification efforts haven't paid off, and the company continues to bleed money. This stock is a no-go.

2. Walgreens Boots Alliance: Walgreens is in the midst of a turnaround, but even if it's successful, investors may not benefit due to the planned acquisition by Sycamore Partners. The stock is trading around the acquisition valuation, so there's little reason to buy. If the deal falls through, it could be bad news for the stock. Stay away!

3. Plug Power: Hydrogen energy hasn't taken off, and Plug Power is drowning in losses. The company's financial picture is troubling, and there's no clear path to recovery. This stock is a risky bet, and investors should steer clear.

The Bottom Line

These three stocks—Tilray Brands, Walgreens Boots Alliance, and Plug Power—have all taken a nosedive since the 2020 market crash. Their current financial health and strategic initiatives do not align with the optimistic outlook investors had prior to the crash. The potential catalysts for recovery are slim, and the likelihood of these catalysts materializing in the near future is low. Do yourself a favor and stay away from these stocks. There are plenty of other opportunities out there that won't leave you holding the bag.