From zero to hero: 7 stock losers that could turn things around in 2024

Upturns in stock prices can occur when you least expect it. And with the opposite scenario imposing a rude awakening, it’s time to at least consider last year’s losers taking a big leap forward in 2024.

As a shareholder of a leading information technology company super microcomputer (NASDAQ:SMCI) It turns out that betting on a failing company that keeps moving forward can be incredibly risky. With so much enthusiasm baked into the price, the target company has to perform an even bigger showboating act. However, at some point the magic wears off.

On the other hand, there are also candidates for stock conversion. As the name suggests, these companies are seriously lacking in promise. Therefore, if the standards are at the lowest level, some positive performance can be of great interest. In other words, there are more low-hanging fruit to be picked.

Granted, red ink can beget more red ink, so the risk is always there. Still, with certain stocks so overheated, such a stock rally could prove surprisingly possible.

Philip Morris (PM)

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At first glance, you can understand why many decide to give up. philip morris (New York Stock Exchange:afternoon). In the current political climate, big tobacco companies don’t garner much sympathy. What’s worse, it appears that their underlying business is under threat. As global smoking rates decline, Philip Morris seems to be fighting the inevitable.

But I don’t have the same feelings of hopelessness and depression that others do. Indeed, I truly believe it is one of the candidates for stock price recovery. First, while smoking prevalence may be on the decline, it is not the same in all countries. Additionally, Philip Morris, like other tobacco companies, is pivoting to heated (or similar) devices.

It is also important to not forget about your financial situation. Indeed, PMs are not queens of values. However, she offers excellent return rates across the board and is consistently profitable. As a result, we have achieved a high dividend yield of 5.76%. A strong track record of stable dividends ranks PM as one of the recovery stocks.

Gilead Sciences (GILD)

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As one of the top biopharmaceutical companies, Gilead Sciences (NASDAQ:guild) has been involved in multiple scientific ventures. The company is perhaps best known for its work on the treatment of HIV/AIDS. Thanks to countless innovations in this field, AIDS is no longer the guaranteed “final” sentence it once was. Rather, through proper care and management, patients can live long and fulfilling lives.

But Gilead’s relevance in the broader biotech space doesn’t make GILD stock immune to serious volatility. This year alone, the stock price has fallen 14%. And over the past 52 weeks, GILD has steadily eroded around 16% of its stock value, frustrating stakeholders. However, the deficit could indicate a discount opportunity within one of the stock market’s upturns.

Basically, it’s probably impossible to ignore a company with such success forever. In addition to HIV/AIDS research, we also offer treatments for hepatitis B, hepatitis C, influenza, and Covid-19. Analysts have set a price target of $87.06 and the consensus is a moderate buy, with upside potential of nearly 22%.

Agco (AGCO)

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At the surface level, Agco (New York Stock Exchange:Agco) should rank among the top related companies. As an agricultural machinery manufacturer, the company plays an indelible role in the wide food value chain. But analysts don’t see AGCO the same way. The stock has fallen more than 10% since the beginning of the year. And after that he was below par at 21% in 52 weeks.

Personally, I think the volatility has gone too far. In its latest earnings disclosure, the company posted record net sales of $14.4 billion in 2023. This total represents a 13.9% increase compared to 2022. Over the past three years, Agco’s revenue growth rate has been 16.7%, compared to nearly 78% in the same period last year. competition. However, the stock trades at just 0.57 times trailing year sales.

Adding to the mystery is that AGCO’s forward earnings multiple is 8.41x. In contrast, the sector’s statistical median is just over 11x. Analysts rate the stock as a consensus Moderate Buy, with an average price target of $143.70. To me, this is one of the positive developments in the stock market.

Biogen (BIIB)

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Headquartered in Cambridge, Massachusetts, biogen (NASDAQ:BIIB) is dedicated to discovering, developing, and delivering treatments for neurological diseases to patients around the world. According to the World Health Organization, an estimated 6.8 million people die from neurological diseases each year. Additionally, the economic, social, and personal costs can be incredibly burdensome.

So, this is an arena you need to be careful about. However, BIIB has fallen significantly this year, dropping more than 18%. On the other hand, I can understand why investors are concerned. Frankly, neurological diseases are a thorny situation for the biotech industry. However, on the other hand, medical workers cannot simply give up.

For speculators who prefer a contrarian route, BIIB trades at just 15 times trailing-year earnings (excluding non-recurring items). Furthermore, the neurological disease treatment market could reach $125.6 billion by 2029. In 2021, the value of this sector was $79.4 billion. Analysts are also confident in Biogen, calling it a moderate buy with a price target of $297.67, suggesting 36% growth potential.

B2 Gold (BTG)

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canadian mining company B2 gold (New York American:BTG) owns and operates gold mines in Mali, Namibia and the Philippines. Fundamentally, B2Gold needs to be relevant from a pure business perspective. Advanced technological solutions such as electric vehicles increasingly require valuable resources, including gold. As demand for sophisticated industries increases, BTG should also head north.

But the streets have other ideas. In fact, the market has seen BTG lose over 19% since the beginning of the year. Over the next year, his security decreased by more than 24%. While a crimson stain doesn’t necessarily inspire confidence, BTG could be one of the better stocks. In addition to the demand argument, B2Gold should also benefit from monetary policy.

Despite the Fed’s best efforts, inflation remains high. If this situation is not properly addressed, BTG’s stock price could rise even more, although unlikely. Interestingly, analysts rate the stock as a strong buy, with a consensus average price target of $4.28.

Transocean (RIG)

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American drilling company transocean (New York Stock Exchange:operation) is the world’s largest offshore drilling contractor by revenue. Although the company has historically been plagued by controversy, it is also important for (hydrocarbon) energy security. Even after an incredible rally from late 2022 to last summer, RIG stock looks volatile.

And that’s diplomatic. Since the beginning of the year, Transocean has suffered a loss of nearly 22%. In the six months since then, it has fallen almost 41%. However, thanks to positive economic indicators, RIG could be ranked among the stocks that are improving. With better-than-expected U.S. GDP and consistently strong employment numbers, RIG stock could rise based on increased demand for hydrocarbons.

Of course, some headwinds help explain Transocean’s decline, including recent operating losses. However, the aforementioned economic forces could lift sentiment. Analysts are overall bullish on RIG stock, expecting it to reach $8.42 per share. Additionally, the upside price target remains at $12, suggesting over 145% upside potential.

Ideal power (IPWR)

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Based on the financial report, ideal power (NASDAQ:IPWR) is not necessarily an attractive possibility for a stock price turnaround. The company sports a solid cash-to-debt ratio of around 49x, which is one of the few positives. On the bearish side, there’s an embarrassment of riches, from an Altman Z-Score of 0.86 (indicating severe distress) to a sky-high price-to-sales ratio of almost 273x.

Since the beginning of this year, IPWR has fallen more than 12%. It has lost nearly 45% over the past 52 weeks. However, if you believe the underlying narrative, Ideal Power can be an ideal contrarian opportunity. According to the company’s website, the company is pioneering the development and commercialization of patented bidirectional semiconductor power switches.

This technology creates highly efficient and environmentally friendly energy control solutions for electric vehicles, EV charging, renewable energy and other innovations. Essentially, this development reduces conduction and switching losses, which can potentially improve operating efficiency.

Benchmark’s David Williams believes in the technology and rates IPWR a Buy, with a price target of $18, suggesting 165% upside potential.

Publication date, Josh Enomoto did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.