Knowing which stocks to avoid can be as important as knowing which ones to buy. No one wants to get stuck with a bad stock, contemplating whether to dump it or hang on to it and wait out a recovery. But for stocks that aren't likely to recover, there are usually plenty of warning signs that investors can watch for in their research.

A couple of stocks that I would be very cautious with right now are Novavax (NASDAQ: NVAX) and Rivian Automotive (NASDAQ: RIVN). While there was once lots of hype behind them, now there's anxiety -- and for good reason.

Novavax's COVID-19 vaccine is approved for use in many countries, with Taiwan being the latest (on June 23) to grant it Emergency Use Authorization (EUA). But one country that hasn't yet granted authorization is the U.S. And it's been three weeks since an advisory committee from the Food and Drug Administration (FDA) recommended granting an EUA for the vaccine.

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Source Fool.com