The stock market has been on a tear lately, but not all stocks are sharing in the gains. A handful of industries and outlier companies are driving the broader market rally, while many other stocks have been left behind. Wall Street has severely punished some for failing to deliver this year, resulting in a few unfairly hated stocks.
Unleashing Potential in Pfizer (PFE)
Pfizer (NYSE: PFE) has been on a rollercoaster ride, but I believe the company is turning a corner. While saying Pfizer is among hated stocks would be an understatement due to the politicization of its COVID-19 vaccines, I see promise in the company’s pivot to other areas. Pfizer’s Q1 earnings beat expectations, with revenue of $14.88 billion surpassing estimates.
A Magical Revival for Walt Disney (DIS)
Walt Disney (NYSE: DIS) has struggled to recapture its former magic in recent years, but the stunning success of Inside Out 2 could mark a turning point. I believe the naysayers who claim most media companies have lost their spark are right in many ways. Disney is more than just a media company; its global cultural influence has waned, and blockbuster hits have become scarce.
Revitalizing Alibaba (BABA)
Alibaba (NYSE: BABA) has faced challenges in recent years that have disappointed investors and weighed on its stock price. However, I remain optimistic about Alibaba’s long-term prospects as the company shifts its focus to high-growth segments like cloud computing and artificial intelligence.
Western Union (WU): A Phoenix Rising
Western Union (NYSE: WU) has struggled in the post-pandemic era, with its stock down 54% from the pre-pandemic peak. The company could see a significant recovery in the long run as transaction volumes rise following anticipated interest rate cuts. Western Union reported Q1 2024 revenue of $1.05 billion, up 3% year-over-year on an adjusted basis, with branded digital transactions growing an impressive 13%.
Opportunities Amidst Challenges: A Financial Analysis
Reassessing Intel’s Standing
Struggling to keep pace in the semiconductor realm, Intel (NASDAQ: INTC) has weathered a stagnant stock price. Despite this standstill, the current market sentiment around the company appears excessively bleak. Intel’s financials show improvement, with revenue growth turning positive and profitability peeping over the horizon.
Noteworthy investments in AI chips fortify the company’s position against AMD’s inroads. Remaining steadfast could see Intel on the path to recovery. Moreover, a potential retreat from the AI frenzy and a funding squeeze on startups might redirect attention to Intel’s more cost-effective AI chip solutions.
While challenges loom, Intel’s strides in pivotal growth areas like AI pave the way for a resurgence in the upcoming quarters.
Lithium Americas Holding Firm
Embroiled in a tough lithium market landscape, Lithium Americas (NYSE: LAC) continues to make headway on its Thacker Pass venture in Nevada. Previously, lithium was a highly touted commodity, but prices plummeted as EV demand receded.
Nevertheless, the future appears promising for Lithium Americas. With substantial cash reserves, a secured loan commitment of $2.26 billion from the U.S. Department of Energy, and an average price target of $6.2, analysts maintain confidence in the stock’s outlook. A swift decline in interest rates could reinvigorate EV sales, potentially uplifting lithium prices and stocks like LAC.
Revival Prospects for EPR Properties
EPR Properties (NYSE: EPR) has faced turbulence recently, with its stock value languishing nearly 50% below pre-pandemic highs. The overall REIT sector has witnessed significant corrections, generating ample pessimism. However, prospects for real estate in the future look brighter amidst shifting demographic trends and heightened migration into the U.S.
Trading at discounted valuations and offering a substantial 7.76% dividend yield, EPR Properties entices investors to weather the storm for a potential recovery.
In the first quarter of 2024, EPR exceeded expectations on both revenue and earnings fronts. Despite some volatility in property figures, overall trends suggest a stabilization. The company’s strategic shift towards experiential real estate further underscores its potential for growth.