Avoid These Stocks
When stocks unexpectedly rebounded days after “Liberation Day,” not every company joined the bounce. Investors should avoid those stocks.
Unity Software (U) fell by 5.56% on April 14 on no news. The gaming platform failed to break out of a downtrend, despite at least two analysts upgrading U stock. Citizens upgraded the stock on March 11, citing the Vector launch as a catalyst. Macquarie upgraded the stock to Neutral on March 10. It believed that the firm could compete against AppLovin “eventually.”
In the biotech sector, avoid Recursion Pharmaceuticals (RXRX). Shares rose after the Food and Drug Administration said it would phase out animal testing. AI-focused firms like Recursion, Certara (CERT), AbCellera (ABCL), and Schrodinger (SDGR) jumped on April 11, 2025. However, Certara is the best pick in this space. It invested on its platform to strengthen its computational models.
In the luxury goods space, avoid LVMH (LVMUY). Shares dropped by 6.41% on Monday. Consumers will continue to cut their spending on goods that they do not need. Inflation, weaker consumer sentiment, and higher inflation from tariffs are headwinds for LVMH.
Investors should also be wary of Estee Lauder (EL), whose yearlong downtrend has yet to end. Elf Beauty (ELF) may find support at $50 while Ulta Beauty (ULTA) may benefit from selling Beyoncé's Cécred new hair care products.
