Avoid These 2 Tantalizingly Cheap Growth Stocks
When you're browsing for growth stocks to invest in, sometimes it's best to leave the stuff you see in the bargain bin for someone else to buy. As the legendary Warren Buffett once said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
And that's just as true when you're considering a beaten-down business at a dirt-cheap price; there's no substitute for quality. Let's take a peek at a pair of popular growth stocks in the cannabis industry to see exactly how true Buffett's advice can ring.
Considering Tilray Brands' (NASDAQ: TLRY) rock-bottom valuation, it's easy to see why bargain-hunting investors might be tempted to buy a few shares. Its price-to-sales (P/S) ratio is around 2.3, which is quite a bit lower than other multi-state operators like Curaleaf, Sundial Growers, and Canopy Growth, to name just a few. But the company's continual struggle to grow and position itself for potential cannabis legalization in the U.S. doesn't paint a pretty picture about its future returns.
Source Fool.com
