This year has so far been extremely challenging for the stock market. The U.S. equity indices have been pushed into correction territory since the beginning of 2022 on concerns of 40-year high inflation, the Fed’s hawkish policy stance, lingering supply chain constraints, geopolitical crisis, and the possibility of an economic slowdown. Over the past month, the S&P 500 Index has declined 8.4%, while NASDAQ Composite Index has plunged 11.6%.
Due to recent macroeconomic shocks and uncertain economic conditions, some struggling companies have cut their guidance for fiscal 2022. These stocks are expected to remain under severe pressure in the near term due to their deteriorating fundamentals. Certain stocks are best avoided now because of their weak financials, history of huge losses, and bleak growth attributes.
