DermTech (DMTK -0.33%) and GoodRx (GDRX -0.14%) have been huge losers for investors over the last 12 months. In this Motley Fool Live video, recorded on Jan. 12., Fool contributors Keith Speights and Brian Orelli answer a viewer's question about whether or not it's time to sell these beaten-down healthcare stocks.
10 stocks we like better than DermTech, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and DermTech, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of January 10, 2022
Keith Speights: The top question on Slido right now is from Young At Heart, and he or she asks, "DermTech (ticker there is DMTK) and GoodRx (ticker there's GDRX), should I sell them?"
Brian Orelli: I don't really follow GoodRx all that closely, so maybe you can comment on that one if you do. I own DermTech. I think they've definitely been disappointing. They've had trouble convincing dermatologists that their technology is worth adopting. That's really been the reason why the value is down so much.
I think they still have a shot because I think that their technology is better than the current technology which requires you to cut out a piece of the potential lesion. Most lesions aren't cancerous and so that's less than ideal compared to just putting a sticker on it and pulling some cells off that way and getting them analyzed.
I think they have potential. But I think right now, I'm certainly not adding to my position because I don't know when the turnaround is going to happen, but I feel like the company has a lot of potential still.
Speights: Like you, I also own shares of DermTech. To me the answer to this question for DermTech or GoodRx or any stock for that matter in terms of should you sell or not. We can't give individual advice here, but all I would say is go back to your initial reasons for buying the stock in the first place. If your underlying premise of what the company is all about, what it's trying to achieve if that premise hasn't really changed, don't worry about the stock's movement up or down.
But if that premise has changed fundamentally, that could be a reason for selling. For me, my underlying premise for buying DermTech hasn't really changed. I still think the company has great prospects it needs to execute well over the next few years, so I'm holding onto my shares.
Orelli: Do you have any thoughts on GoodRx?
Speights: Yeah, just that general philosophy. I don't follow GoodRx all that closely, but I would just say I don't know anything that would make me think that the underlying premise for someone buying that stock should have changed in the last couple of months. I think the company's business is still going in the direction that it's gone for the last couple of years. Look at why you bought it in the first place and if the reasons why you bought it are still in place, still intact, hang on.
