Looking for good deals in the stock market? Consider investing in currently underperforming stocks with long-term potential. One way to identify these opportunities is to look for stocks near their 52-week lows. While these investments come with risks due to bad news or uncertain outlooks, they have the potential to deliver better-than-expected returns if they prove their doubters wrong.
Three stocks that are currently down year to date but could be worth holding onto for the future are Intel (NASDAQ: INTC), Cisco Systems (NASDAQ: CSCO), and PepsiCo (NASDAQ: PEP).
Intel, a chipmaker, has seen its shares drop by 40% this year. Despite modest revenue growth of 9% in the first quarter, the company reported a net loss. However, with a focus on reducing costs and capitalizing on opportunities in chip manufacturing, Intel could be a promising investment for those willing to take on some risk.
Cisco Systems, a networking and IT infrastructure company, may experience a delay in demand due to current economic conditions. However, as companies upgrade their infrastructure to support AI-powered technologies, Cisco’s products and services could see increased demand in the future. With the stock trading near its 52-week low, now could be a good time to consider investing.
PepsiCo has been able to maintain strong returns amid inflation by raising prices. While revenue growth has slowed recently, the company’s strategic pricing and potential for increased demand in the future could make it a valuable long-term investment. With the stock trading just above its 52-week low and offering a 3.3% dividend yield, PepsiCo presents an attractive opportunity for investors.
While these stocks may face challenges in the short term, they have the potential to deliver significant returns over time. Consider these underperforming stocks with long-term upside for your investment portfolio.