3 Sorry Stocks to Sell in November Before It’s Too Late
The stock market seems to be recovering from the October slump, as the S&P 500 and the Nasdaq have gained more than 3% and 6%, respectively, since the first week of November. However, not all stocks are benefiting from this year’s broad rally. There have been several equities that have had terrible returns throughout the year and have consequently dragged down the portfolios of investors still holding them.
Below are three sorry stocks that investors should definitely sell before November is over.
Corsair Gaming (CRSR)
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Corsair Gaming (NASDAQ:CRSR) is a leading provider of gaming and streaming hardware, software, and accessories. While the company is best known for its gaming keyboards and desktop PCs, Corsair also provides a number of key components, including power supplies and random-access memory (RAM) to technology consumers.
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Unfortunately, the stock has had far from a stellar year. While the pandemic years saw revenue figures reach record heights due to strong demand for consumer electronics, Corsair has seen revenue decline in 2022 and in the first quarter of 2023. As consumers continue to face inflation, there’s been a pullback in discretionary spending, especially for consumer tech. Shares of PC hardware provider has 9.2% this year and could go down even further as U.S. economic data continues to point to a slowdown, which could imperil Corsair’s near and medium-term revenue.
Silicon Laboratories (SLAB)
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Silicon Laboratories (NASDAQ:SLAB) is a semiconductor company that specializes in wireless connectivity, internet of things (IoT), and infrastructure products. The company experienced a couple years of strong growth during and shortly after the pandemic as many people were forced to stay indoors and, as a result, relied heavily on internet services and devices. In 2021 and 2022, revenue grew by 41.1% and 42.1% on a year-over-year basis, respectively.
Unfortunately, in 2023, much of those solid growth numbers have dissipated. In the first quarter, revenue figures declined by 6.9% Y/Y, and in the second quarter, revenue declined even further by 24.5% Y/Y. Silicon Labs exposure to consumer end-markets is perhaps largely to blame here. The fact of the matter is, consumers are spending less, and Silicon Labs’ customers are holding more inventory than they would in normal times.
SLAB’s shares have plummeted 28.9% since the start of the year. Investors should sell their shares before they continue to get burned.
Endava (DAVA)
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Endava (NYSE:DAVA) is a global IT services provider that offers digital transformation, agile development, cloud migration, and automation solutions to clients across various industries. DAVA has benefitted from many other companies outsourcing certain tasks to tech or business services companies, allowing them to focus their own resources on what’s important. Thus, Endava has grown rapidly in the past few years while also expanding its presence in Europe, North America, and Latin America.
However, like a number of services businesses in 2023, Endava has struggled to increase top-line growth amidst a difficult selling environment with many companies having to deal with constrained IT budgets. While Endava grew revenue in the first quarter by a tepid 3.4%, both the second and third quarters saw revenue declining year-over-year.
Endava’s shares have fallen 28.2% YTD and probably will not recover in the near term as the business IT services environment remains tough.
On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.
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