Market Overview

The S&P 500 is currently near its all-time high, as investors seem to have eased their concerns about tariffs.

On another note, Enphase Energy has recently seen a decline, hinting at the possibility of losing solar credits.

In addition, Brown Forman has reported weaker quarterly results, largely due to tariff pressures.

Last month saw a bounce back in stocks, bolstered by signs that the economy withstands tariffs effectively, along with growing hopes for a trade agreement between the U.S. and China. Yet, not every stock has been thriving, and some have faced significant challenges.

Now, let’s take a closer look at two of the worst-performing stocks from the S&P 500 last month to see if they could still be potential buys.

Enphase Energy

Enphase Energy, known for its microinverters utilized in solar panels, took a hit on Tuesday. It was among several solar stocks that dropped sharply, falling by 24% as of June 17th, and experienced a staggering 30.7% decline over the past month.

This downturn reflects a broader trend where solar stocks have struggled for the last five years due to intense competition from China, an unpredictable regulatory landscape, and plummeting prices.

In April, Enphase posted a first-quarter revenue of $356.1 million, which was up 35%, alongside a profit of $29.3 million. However, the potential end of regulatory credits could create substantial challenges for the company moving forward.

Brown Forman

Meanwhile, Brown Forman, the producer of Jack Daniels and other spirits, also faces hurdles related to regulatory challenges. The company has been impacted by tariffs on American whiskey exports, affecting major brands like Woodford Reserve. Stocks for Brown Forman plunged by 28.5% last month.

In its first-quarter revenue report, the company reported a revenue drop of 7%, with a 3% decline on an organic basis.

To counteract these challenges, Brown Forman has engaged new distributors in 13 U.S. markets, aiming to boost domestic sales. Still, it appears likely that the company will continue to face difficulties due to the geopolitical pressures impacting American spirit brands and the overall weakness in that sector.

It’s certainly something to ponder before considering an investment in Brown Forman.

Analysts from a notable investment service have identified ten stocks they consider to be preferable buys right now, and interestingly, Brown Forman is not included among them. The stocks that made the cut show promise for hefty returns in the coming years.