25 Worst Stocks to Own in January: A Cautionary Tale for Investors

As we step into the new year, it's essential to be aware of the stocks that have underperformed the broader market and their respective sectors. By examining the worst-performing stocks of 2024, investors can gain valuable insights into the market's dynamics and make more informed decisions. In this article, we will explore the 25 worst stocks to own in January, focusing on their fundamentals, valuation, and the reasons behind their underperformance.

1. New Fortress Energy Inc. (NFE) -64.2%
- Delay in the FLNG 1 project led to a significant drop in the stock price.
- EBITDA missed expectations due to the project's delay, costing the company $150 million in the second quarter.

2. Five Below Inc. (FIVE) -64.6%
- Negative same-store sales growth and the resignation of CEO Joel Anderson contributed to the stock's decline.
- Despite a low forward P/E ratio of 15.4, analysts project earnings growth in the year ahead.

3. New York Community Bancorp Inc. (NYCB) -66.1%
- Disclosure of "material weaknesses" in the bank's internal loan review process led to a significant drop in the stock price.
- The bank's capital raise of $1 billion in exchange for equity may have diluted existing shareholders' value.

4. Mobileye Global Inc. (MBLY) -67.0%
- Difficult market conditions, including a slowdown in chip orders by automakers, negatively impacted the company's earnings.
- The company's reliance on the automotive industry for its revenue makes it vulnerable to cyclical downturns in the sector.

5. Teladoc Health Inc. (TDOC) -67.2%
- A series of negative headlines, including the resignation of CEO Jason Gorevic and a massive charge related to challenges at BetterHelp, contributed to the stock's underperformance.
- Negative revenue growth and a significant net loss in the second quarter indicated underlying operational issues.

6. Sigma Lithium Corp. (SGML) -69.5%
- A significant drop in the price of lithium carbonate negatively impacted the company's revenue and earnings.
- Net earnings losses and negative revenue growth in recent quarters indicated that the company's fundamentals have been negatively impacted by the decline in lithium prices.



In conclusion, the worst-performing stocks of 2024 offer valuable insights into the market's dynamics and the factors that contribute to a stock's underperformance. By examining the fundamentals, valuation, and reasons behind the underperformance of these stocks, investors can make more informed decisions and avoid potential pitfalls in the new year. As always, it is essential to conduct thorough research and consider multiple perspectives when making investment decisions.