New Year, New Opportunities: 3 Beaten-Down Stocks Poised for a Rebound
As the calendar flips to 2025, investors are wondering what the new year will bring. While no one can predict the future, there are some stocks that have been unfairly beaten down and could be due for a rebound.
Roku: A Compelling Ad Platform
Roku’s stock has been on a rollercoaster ride, plummeting 83% from its all-time highs. However, with a growing membership base, revenue, and improving profitability, the company is poised for a comeback. The recent moderation in inflation and increasing ad budgets are also working in its favor. With a price-to-sales ratio of less than 3, Roku looks like a prime candidate for a rebound.
Wayfair: A No-Brainer in Online Home Furnishings
Wayfair’s pandemic-fueled growth was followed by slowing revenue and declining sales. However, the company’s online home furnishings platform remains a compelling opportunity. Despite the challenging environment, Wayfair has made steady progress in controlling expenses and improving its net loss. With revenue per active customer increasing 1.3%, the company is strategically investing in building relationships that will fuel a rebound when the housing market improves.
Peloton: A Fallen Star with Potential
Peloton’s stock has plummeted 94% from its all-time highs, making it a prime example of a fallen-from-pandemic-highs stock. However, with new CEO Peter Stern at the helm, the company is working to right its cost structure and meet demand in a slower environment. With gross profit up 6% and gross margin expanding by 3.5 percentage points, Peloton has the potential to be a high-margin business when it gets its act together.
Don’t Miss the Boat: Expert Stock Recommendations
Ever feel like you missed the boat in buying the most successful stocks? Our expert team of analysts issues rare “Double Down” stock recommendations for companies that they think are about to pop. With a track record of success, including Nvidia, Apple, and Netflix, now is the best time to buy before it’s too late. See 3 “Double Down” stocks that could surprise the market in 2025.
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