Zombie Stocks List
Stocks you should eliminate from your portfolio!
We started our Zombie Stock list in June 2022 and have added a total of 33 stocks to the list. Post this report, 21 stocks remain on the list.
As a reminder, to make the Zombie Stock list, companies must:
- have less than 24 months of cash to sustain their high Free Cash Flow burn,
- have a negative interest coverage ratio (EBIT/Interest expense), and
- be a Danger Zone stock.
See the end of this report for performance details on all of the Zombie Stocks.
The Full Zombie Stock List
21 stocks remain on the Zombie Stock list.
Figure 1 shows all 33 Zombie Stocks. We mark those that have been removed from the list with an asterisk.
Figure 1: Zombie Stock Reports: Performance Since Publish Date Through 9/20/24
| Company Name | Ticker | Date Added | Return Since Add Date | Return as Short Vs. S&P 500 |
| Freshpet Inc.* | FRPT | 6/23/22 | -16% | 9% |
| Peloton Interactive | PTON | 6/23/22 | -56% | 102% |
| Carvana Co. | CVNA | 6/23/22 | 450% | -404% |
| Snap Inc. | SNAP | 7/22/22 | 1% | 43% |
| Beyond Meat, Inc. | BYND | 8/1/22 | -60% | 100% |
| Rivian Automotive* | RIVN | 8/8/22 | -61% | 94% |
| DoorDash, Inc. | DASH | 8/10/22 | 79% | -43% |
| Shake Shack, Inc. | SHAK | 8/10/22 | 104% | -68% |
| AMC Entertainment | AMC | 8/15/22 | -98% | 131% |
| GameStop Corporation* | GME | 8/15/22 | -68% | 69% |
| Chewy Inc.* | CHWY | 8/17/22 | -55% | 57% |
| Uber Technologies | UBER | 8/17/22 | 146% | -113% |
| Robinhood Markets | HOOD | 8/22/22 | 150% | -111% |
| Tilray Brands* | TLRY | 9/7/22 | -45% | 77% |
| Affirm | AFRM | 9/19/22 | 103% | -55% |
| Sunrun | RUN | 9/21/22 | -40% | 94% |
| Blue Apron * | APRN | 9/26/22 | -79% | 95% |
| RingCentral | RNG | 10/3/22 | -29% | 80% |
| Allbirds Inc.* | BIRD | 10/17/22 | -71% | 89% |
| Wayfair | W | 11/14/22 | 25% | 18% |
| Atlassian* | TEAM | 11/16/22 | 43% | -32% |
| Bill.com | BILL | 11/16/22 | -55% | 100% |
| Okta | OKTA | 11/16/22 | 55% | -10% |
| Oatly* | OTLY | 11/21/22 | -62% | 71% |
| Twilio | TWLO | 11/23/22 | 30% | 12% |
| Ceridian* | CDAY | 11/23/22 | -3% | 11% |
| Redfin | RDFN | 11/30/22 | 134% | -94% |
| Five9 Inc.* | FIVN | 12/5/22 | -37% | 72% |
| Opendoor | OPEN | 1/30/23 | -7% | 47% |
| Compass Inc. | COMP | 2/6/23 | 46% | -9% |
| Sweetgreen Inc. | SG | 3/13/23 | 413% | -367% |
| Lucid Group* | LCID | 4/10/23 | -23% | 31% |
| Trupanion | TRUP | 5/1/23 | 22% | 17% |
| Overall Portfolio Return | -15% | 61% | ||
Sources: New Constructs, LLC and company filings.
*Stocks removed from the Zombie Stock List. Performance tracked through the date each was removed. Linked report goes to the report in which the stock was removed.
Since our first report on June 23, 2022, the Zombie Stocks have fallen 15% while the S&P 500 is up 46%. See Figure 2.
Figure 2: Combined Performance of Zombie Stocks List Through 9/20/24
Sources: New Constructs, LLC and company filings.
Disclosure: David Trainer, Kyle Guske II, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.
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