Could Wolfspeed Make for a Good Contrarian Stock to Buy?

Taking a contrarian position in a stock comes with risks, sometimes substantial ones. That's because you're effectively going against the market, and are willing to believe that the company can do the opposite of what it's widely expected to do. A good example is a stock that's in a tailspin and which faces a lot of adversity. It's easy to get down on that type of investment and assume it'll just go lower. But by taking a contrarian position, you're expecting it will turn things around. And if that happens, you could stand to generate significant gains from investing in it.Wolfspeed (NYSE: WOLF) is a semiconductor stock that many people don't have a lot of hope for. As of Wednesday's close, it had lost 80% of its value since the start of the year. The business, which makes silicon carbide, faces an uncertain future as it recently filed for bankruptcy protection. There's undoubtedly a ton of risk that comes with investing in the stock.But the company is working on turning its business around, and it even brought on a key executive recently with experience in doing just that. If it's able to emerge from bankruptcy protection successfully and become a profitable business, it could be positioned for some excellent growth opportunities. Could it be a good contrarian stock to buy? Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool