2 Beaten-Down Stocks to Avoid in the Tariff-Fueled Correction

Core Viewpoint - The article discusses the impact of President Trump's tariffs on equity markets and highlights the importance of avoiding companies that appear undervalued but have underlying issues that make them unattractive investments. Company Analysis: Teladoc Health - Teladoc Health, a telemedicine company, has seen a significant decline in revenue growth since the pandemic, with BetterHelp's revenue dropping by 10% year over year and a 6% decrease in paying users [3][5] - Despite high growth margins, Teladoc remains unprofitable and struggles to control expenses, particularly in marketing, as it aims to establish itself in the telemedicine industry [4][6] - International revenue grew by 10% year over year to $105.1 million, but total revenue fell by 3$640.5 million, raising concerns about the sustainability of profitability amid rising expenses [5] - The company is exploring initiatives like third-party coverage for BetterHelp and artificial intelligence projects, but the lack of a clear path to profitability makes it a risky investment [6] Company Analysis: Tandem Diabetes Care - Tandem Diabetes Care specializes in innovative insulin pumps, such as the t:slim X2, but has faced challenges including reduced patient purchases and strong competition from larger companies like Medtronic [7][8] - The company has not been consistently profitable, and its stock has performed poorly, with a 54% decline in shares this year [8] - Trump's tariffs pose a significant risk to Tandem, as the company relies on international manufacturing, which could increase expenses and negatively impact margins and revenue due to potential inflation or recession [9][10]