Savvy investors know that sometimes a large decline in a stock is unwarranted, and that drop in price is really an opportunity to buy the stock at a discount.
"Buy the dip" has been the rallying call from certain investors for everything form AMC Entertainment (AMC) to Bitcoin to Apple (AAPL).
DON'T MISS: Tyson Foods Stock Is Slumping; Here's Where It Could Find Support
But every dip isn't created equally, and CNBC's Jim Cramer took to Mad Money to warn investors against buying the dip in a stock that has dropped nearly 20% over the past four weeks.
A caller during Mad Money's "Lightning Round" wanted to know about a "dividend stock with growth potential" and mentioned Tyson Foods (TSN) as a potential buy.
Cramer was not on board.
"Absolutely not. One of the worst stocks in the entire S&P 500, S&P 1000, the S&P 2000, it doesn't matter," Cramer said.
Tyson Foods is trading at its lowest level in years, led by its disappointing quarterly results.
The company reported a top- and bottom-line miss for its fiscal second quarter, with sales of $13.13 billion missing expectations by almost $500 million.
Worse, management referenced thinner-than-expected margins and lowered its full-year outlook.
TheStreet's own technical analysis guru Bret Kenwell set a floor for the stock's decline weeks ago, and Tyson is still trading above that $42 - $44 floor.
"For investors who believe the company’s issues are short term in nature, this is a cheap price to pay. Not to mention: The stock would pay a dividend yield near 4.5%," Kenwell said.
Tyson Foods shares were up 0.6% to $50.93 at last check on the afternoon of June 1.
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