3 Defeated S&P 500 Stocks Ready to Rebound | personal finance

(James Brunley)

If you are a “buy the dip” type of investor, the current pullback is a great opportunity. Although the S&P 500 (SNPINDEX: ^GSPC) Ending last week on a high note, the index is still 13% below the March high and remains 16% down for the year. And for some of these stocks, the last few months have been much, much worse.

It is that particular group that we are interested in at the moment… the ones that have led the market sell-off. While investor sentiment is understandable, some sell-offs have been overdone. The market should soon correct its mistake by raising the prices of these names. Friday’s rebound may even mark its pivots.

Here’s a closer look at your top three prospects in this group right now.


Most investors probably know Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) as the name behind search engine giant Google and online video repository YouTube. However, what most investors don’t fully appreciate is the reach of both platforms.

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Look, Google handles 92% of the world’s web searches, according to Statcounter data from GlobalStats, while YouTube attracts more than two billion unique users every month, offering more than a billion hours of video content every month. the days.

Technically speaking, that makes it bigger than the streaming giant. Netflix, even if the monetization model is a bit different. Alphabet also owns the popular Android mobile operating system, and its cloud computing services arm is also getting pretty big. Google Cloud revenue of $5.8 billion last quarter, in fact, was up 45% year-over-year, accounting for more than 8% of Alphabet’s revenue.

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It’s a good mix of complementary and resilient businesses, although the market hasn’t seen it that way lately. Shares are down 18% since late March alone and are 22% below November highs. Investors seem to think that the combination of the Russian invasion of Ukraine, runaway inflation and the rising specter of a recession is more than the company can handle.

However, the market may not realize that these kinds of headwinds don’t really negate the need for smartphones, web searches, apps, or cloud computing platforms. Although primarily a search engine at the time, Alphabet navigated through the 2007/2008 recession triggered by the subprime mortgage crash like it wasn’t even happening, increasing revenue and revenue each year between 2006 and 2009. The arrival of COVID-19 was also just a blip for the company’s revenue growth.

Simply put, Alphabet’s businesses are built like tanks.

Discovery of Warner Bros.

Generally speaking, investors haven’t really known what to do with Discovery of Warner Bros. (NASDAQ: WBD)which was simply “Discovery” before the company officially acquired WarnerMedia, including HBO Max, from AT&T on April 8. But they haven’t given him any benefit of the doubt. Shares of Warner Bros. Discovery are down more than 40% from their January high, hitting new 52-week lows last week.

However, the strong sale rules out the power that this company is going to have with both HBO Max and Discovery+ in its streaming portfolio.

Image source: Getty Images.

Think about it. The Discovery brand is one of the best known in the television market for its lifestyle content, with channels such as Animal Planet and Food Network and programs such as Chopped, 90 day fianceY lone star law in your wallet.

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Meanwhile, Warner Brothers isn’t just a movie licensee for DC characters like Batman and Superman and the name behind Matrix franchise but also owns TV shows like Friends Y The Bachelor. Although it is not entirely clear what the eventual combination of the two platforms will look like and price, it is not an exaggeration to suggest that it will be one of the transmission the most comprehensive, robust and one-stop-shop offers on the market.

Other streaming services should be scared, but more than that, Warner Bros. Discovery shareholders should be excited about the company’s opportunity to tap into several powerful brands.

ford engine

Finally add ford motor company (New York Stock Exchange: F) to his list of S&P 500 stocks poised for a rebound.

Yes, your investment in electric vehicle equipment. rivian automotive It has turned into a real debacle. Rivian shares are now down 65% from their initial public offering (IPO) price of $78 and 85% below their post-IPO peak of $179.47.

The big setback translated into a $3.1 billion loss for Ford last quarter, as the value of publicly traded stock investments on a company’s books must be adjusted to reflect changes in the stock price. . This writedown is a big part of the reason Ford shares have nearly halved since January. The bearish undertow across the market of course helps drive stocks lower.

However, if you can look past all the hype and noise, you’ll see that this isn’t the struggling Ford of yesteryear. The budget-friendly automaker is reinventing itself as a legitimate electric vehicle competitor. For example, its battery-powered Mustang Mach-E is Consumer Reports’ top electric vehicle pick for 2022, displacing the Tesla The Model 3 and its Lightning pickup are getting rave reviews now that it’s starting to ship in large numbers and can be tested. Both vehicles are well sold.

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However, it is just a taste of what is to come. Ford intends for half of its production to be fully electric vehicles by 2030, and to support this push, Ford Motor already quietly operates the largest electric vehicle charging network in North America.

If you think the electric vehicle revolution is real, Ford stock is actually one of the best ways to get connected right now.

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Suzanne Frey, an Alphabet executive, is a member of The Motley Fool’s board of directors. james brumley holds positions in AT&T, Alphabet (A-shares), and Warner Bros. Discovery, Inc. The Motley Fool holds positions in and recommends Alphabet (A-shares), Alphabet (C-shares), Netflix, and Tesla. The Motley Fool recommends Warner Bros. Discovery, Inc. The Motley Fool has a disclosure policy.