Stocks have rallied in the last month on signs that the economy has thus far been resilient to tariffs and on hopes that the U.S. and China can negotiate a trade agreement. However, not every stock has been a winner.
Let's take a look at two of the worst-performing stocks on the S&P 500 (SNPINDEX: ^GSPC) over the last month to see if either of them is worth buying.
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1. Enphase Energy
Enphase Energy (ENPH +2.88%), a leading maker of microinverters used with solar panels, took a dive on Tuesday, as the Senate kept cuts to wind and solar energy incentives that were in the House version of the tax and budget bill.
NASDAQ: ENPH
Key Data Points
Enphase was one of several solar stocks that tumbled on the news, falling 24%, and as of June 17, it's down 30.7% over the last month.
That performance continues a weak run for the stock, which is down over the last five years, as solar stocks have struggled due to competition from China, a volatile regulatory environment, and falling prices.
Enphase reported first-quarter earnings in April, with solid top-line growth of 35% to $356.1 million and a profit of $29.3 million. Nonetheless, an end of regulatory credits could put significant pressure on its business.
2. Brown-Forman
Brown-Forman (NYSE: BF.B), maker of Jack Daniel's and other spirits, has also struggled due to regulatory challenges. In Brown-Forman's case, it's due to tariffs imposed on American whiskey exports, impacting its top brands, which also include Woodford Reserve. As of June 17, the stock was down 28.5% over the last month.
NYSE: BF.B
Key Data Points
In its first-quarter earnings report, the company said that revenue fell 7%, or 3% on an organic basis.
Brown-Forman also said it named new distributors in 13 markets across the U.S., part of an effort to deliver a boost to domestic sales.
Still, with geopolitical pressure on American spirit brands, and broader weakness in the category, Brown-Forman seems likely to continue to struggle.
