The market isn't rational always and everywhere. Sometimes, shares of excellent companies with bright futures almost inexplicably fail to keep pace with broader equities. When that happens, it's worth it to buy the dip. Other times, some corporations lag the market for good reasons: Their businesses and prospects look shaky. In those cases, investors should steer clear. With that said, let's consider three beaten-down stocks that don't look like bargains at all: (NASDAQ: NVAX), Chegg (NYSE: CHGG), and Aurora Cannabis (NASDAQ: ACB).

The COVID-19 vaccine market helped companies such as Moderna and Pfizer generate tens of billions in sales. Novavax sought to get a piece of the pie, and it did, but its share was comparatively tiny. The biotech is now facing serious problems. The pandemic has largely receded, and although plenty of patients continue to get inoculated against this disease, the market has shrunk considerably.

Novavax generated about $1 billion in sales last year. The company expects to match that total this year -- at best. Further, Novavax is unprofitable. Can the company save itself the way biotechs often do, by developing newer products?

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Source Fool.com