3 Once-Promising Growth Stocks That Are Down 40% Since the 2020 Crash -- Can Any of Them Recover?

It's been five years since the 2020 market crash, when news of a global pandemic sent investors into a panic. For investors brave enough to buy amid that crash, the gains for many stocks have been significant since then.

It was on March 16, 2020, that many stocks hit their lows. That day, the S&P 500 fell by 12%, marking one of its worst performances ever. However, there are some stocks that continue to struggle today. Tilray Brands (NASDAQ: TLRY), Walgreens Boots Alliance (NASDAQ: WBA), and Plug Power (NASDAQ: PLUG) have been dreadful buys over the past five years. They're all down 40% or more since then.

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Here's a look at why these stocks were once promising growth investments, why they've performed so badly, and whether it's worth taking a chance on them today.

Tilray Brands: -80%

Canada-based marijuana producer Tilray Brands has struggled mightily in recent years. The main reason investors take a chance on the business is due to the hope that the U.S. will legalize marijuana on the federal level, which would open up a massive market opportunity for Tilray. That didn't happen under a Democrat-controlled House and Senate, and it's even less likely to happen now, with the Republicans in control.

To its credit, Tilray has been buying up alcohol brands in an effort to diversify and grow its business. But the business continues to incur losses. They've totaled $249 million over the trailing 12 months, on revenue of $829 million.

Tilray's stock could turn things around if there's a more favorable outlook on the prospects for marijuana legalization, but there's no reason to expect that will happen anytime soon. While the marijuana stock may look cheap given its massive decline over the years, investors buying the dip continually get burned on Tilray. It's not a stock I'd take a chance on.

Walgreens Boots Alliance: -75%

Another struggling stock is Walgreens Boots Alliance. The pharmacy retailer got a boost in traffic during the pandemic's height. It offered vaccines, which helped give people a reason to shop in its stores, and while there, spend money on other day-to-day necessities as well. There was hope that Walgreens would be a good growth stock with its plan to launch hundreds of medical clinics across the U.S., but that hasn't panned out at all, with the company struggling to turn a profit.

Since the pandemic's height, companies have been offering more flexible shopping options, including delivery and in-store pickup. Going to your local Walgreens just isn't as much of a necessity anymore given the more varied options for shopping online, whether it's for discretionary purchases, or essentials, including prescriptions. Walgreens isn't the only pharmacy that has struggled. Rival Rite Aid filed for bankruptcy protection in 2023 (it would end up emerging from it a year later).

Walgreens is now in the midst of a turnaround under new CEO Tim Wentworth. It's a long road ahead, but even if it's successful, investors may not benefit. Sycamore Partners is buying the company for $10 billion, and would take it private upon doing so. The stock is trading around that valuation right now, so there's little reason for investors to buy the stock, as any upside at this point will be limited. And if the deal ends up falling through, that likely wouldn't be good news for the stock.

Plug Power: -40%

The best-performing stock on this list is Plug Power, and it's down 40% in five years. The stock was supposed to be a great option to bet on the economy's transition to more environmentally friendly sources of energy. But hydrogen energy hasn't taken off, and there are doubts about whether it's a better option than batteries for vehicles.

To make matters worse, Plug has been gushing out losses along the way. In 2024, it incurred a net loss of $2.1 billion, a year after its net loss hit nearly $1.4 billion. With abysmal financials and an uncertain future, investors are taking on a big risk with Plug Power stock today.

The company has been burning through cash, and there's no reason to expect that will stop anytime soon. With a troubling financial picture, investors shouldn't assume that there will be a drastic turnaround for the stock, even in the long run. It isn't a safe investment to own.

This means that, unfortunately, none of the stocks on this list may make for suitable investment options today.

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David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.