© Reuters. Should You Buy the Dip in Virgin Galactic Holdings?
Virgin Galactic (SPCE) stock has grossly underperformed the broader markets in 2021 and is down 67% from record highs. This is a result of its weak financials and high research and development expenses, making it a high-risk bet despite the recent pullback.In 2021, several growth stocks have lost significant momentum after stellar runs. As growth stocks generally trade at steep valuations compared to their revenue and earnings, it’s enticing when they are available at a lower multiple.
One such stock is Virgin Galactic Holdings (NYSE:), which more than doubled in 2020 and is now down 15% year-to-date. In fact, Virgin Galactic stock is now down 67% from all-time highs. SPCE is an aerospace company that develops human spaceflight for individuals as well as researchers in the U.S. It also manufactures air and space vehicles.
Given the recent pullback in stock prices, let’s see if SPCE is a buy right now.
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