2 Struggling Stocks I'd Avoid in May

This year, equity markets are performing better than in 2022 despite lingering economic issues and, potentially, a recession on the way. However, some stocks continue to struggle mightily. That's the case with cannabis company (NASDAQ: SNDL) and online learning platform Chegg (NYSE: CHGG).

Both businesses have substantially underperformed the S 500 year to date. There are good reasons for that, as SNDL and Chegg face some uncertainty that should make most investors stay a safe distance away from both, at least for now. Let's dig deeper.

Canadian cannabis companies have faced severe headwinds over the past couple of years. They have generally struggled to grow their revenue and have recorded consistent losses. SNDL has somewhat managed to avoid these issues by diversifying away from its cannabis operations and getting into the liquor retail business. In 2022, the company's revenue soared by 1,170% year over year to $712.2 million, but that was almost entirely due to acquisitions.

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Source Fool.com