Do you like discounts? These 5 game-changing stocks are 35% (or more) below their 52-week highs
Whether you realize it or not, investors have witnessed history for the past 18 months. They saw Wall Street suffer the fastest more than 30% drop in benchmark history S&P 500, as well as benefit from the strongest rebound on record from a bear market bottom. Since hitting its low on March 23, 2020, the S&P 500 has nearly doubled in value.
But despite this persistent rise, some of Wall Street’s most groundbreaking stocks have retreated significantly from their 52-week highs. However, this is not a cause for panic. Rather, this is your opportunity to grab top tier businesses at a discount.
The next five game-changing stocks are all at least 35% below their 52 week highs and begging to be bought.
Teladoc Health: 52% below 52 week high
A leading healthcare innovation company that has been cut by more than half is the telehealth service giant Teladoc Health (NYSE: TDOC). Investors appear to be concerned about the near-term growth prospects as the US economy reopens. Wall Street was also not pleased with Teladoc’s larger-than-expected losses following its acquisition of applied health signals firm Livongo Health.
While there is no doubt that we could see operational turbulence in 2021, Teladoc’s platform is the undisputed wave of the future in personalized care. Virtual visits are more convenient for patients and can help physicians better monitor patients with chronic illnesses. This is likely to translate into better patient outcomes and less money in the pockets of health insurers. Unsurprisingly, Teladoc’s annual sales grew by an average of 74% in the six years leading up to the pandemic.
Teladoc’s integration of Livongo Health also strengthens its position as a leader in innovation in the healthcare sector. Livongo collects a lot of data on patients with chronic diseases and relies on artificial intelligence to send advice to its members to help them lead healthier lives.
At the end of June, Livongo had 715,000 registered members, with the current focus on diabetic patients. With plans to expand its service to people with weight management issues and high blood pressure, Livongo’s potential membership pool covers a large percentage of adults in this country.
Planet 13 Holdings: 36% below 52-week high
You might scratch your head and wonder how a stockpile of marijuana is a game-changer. The answer lies in the way Planet 13 Holdings (OTC: PLNH.F) operates his business.
Planet 13, which is down 36% from its 52-week high, has not followed in the footsteps of other US multi-state operators. Instead of planting its proverbial flag in as many legalized states as possible, it only has two operational dispensaries.
However, these outlets (known as SuperStores) are as much about improving the customer experience as they are selling cannabis products. The Las Vegas SuperStore spans 112,000 square feet and features a restaurant, event stage and consumer fulfillment center. Meanwhile, the newly opened Orange County SuperStore will expand to 55,000 square feet when fully completed and will have 16,500 square feet of retail space. There is no pot stock in the United States that offers a more comprehensive cannabis experience than Planet 13.
It is also a company ready to take the step towards recurring profitability. The pandemic has actually been positive for Planet 13 in that it has forced the company to go beyond its tourist ties to Vegas in order to attract locals. With a healthy mix of recurring local sales and returning tourism to Sin City, Planet 13 looks set to go green.
PubMatic: 58% below 52 week high
Another groundbreaking stock that’s up for sale and ready for investors to grab is small-cap ad technology. PubMatic (NASDAQ: PUBM). Shares of the heavily shorted company are approaching a 60% drop from their 52-week high.
PubMatic is a sell-side platform (SSP) in the programmatic ad-tech space. In English, this means it represents publishers and helps them sell their display space to advertisers using machine learning algorithms. The platform is clearly resonating with publishers, given that existing customers spent 30% more in the first quarter of 2021 than in the previous year quarter.
The benefit of PubMatic’s cloud-based advertising infrastructure is that it will benefit from continued cable reduction and content transfer to online and mobile sources. As a result, management anticipates a consistent double-digit revenue growth opportunity emerging from programmatic ads for mobile, digital video, and connected / over-the-top TV for at least the next four years, if not longer. While PubMatic will continually invest in technology to help it optimize the advertisements shown to users, it is already profitable enough and has shown no signs of slowing SSP demand.
In other words, he’s a fantastic candidate to bounce back from recent lows.
Novavax: 43% below 52 week high
Biotechnology actions Novavax (NASDAQ: NVAX) Also finds itself on the sales rack in a very volatile year for the drug developer. The filing of an emergency use authorization and production delays for its leading 2019 coronavirus disease (COVID-19) vaccine candidate, NVX-CoV2373, recently shattered shares, pushing them at 43% below their 52-week high.
While these delays may cost Novavax very short-term sales potential in the United States, the company’s COVID-19 vaccine looks like a slam dunk to receive emergency use authorization. In a large-scale study in the UK and a subsequent Phase 3 study in the US and Mexico, Novavax’s COVID-19 vaccine provided around 90% effectiveness. This may well be enough to launch less effective / controversial vaccine options from AstraZeneca and Johnson & johnson completely out of the picture. If so, Novavax would still offer great sales potential on a global scale, even with a late entry.
In addition, Novavax is in the early stages of developing a combined COVID-19 / influenza vaccine that would allow it to really stand out. This could make it a major player in initial and / or annual booster vaccines.
To be on the safe side, Novavax appears to be valued at just over five times Wall Street’s profit forecast for the coming year and less than three times annual sales in 2022. That’s a godsend for an innovative drug developer .
Pinterest: 35% below 52 week high
A fifth and final game-changing stock that can be bought at a discount is a social media newcomer Pinterest (NYSE: PIN). Considering its post-profit slump following the decline in monthly active users (MAUs) from the sequential first quarter, Pinterest stock finished 35% below its 52-week high last week.
While it might be disappointing to see the company’s MAUs drop by 24 million in the second quarter from the first quarter of 2021, the growth rate linked to the pandemic was simply unsustainable. Even with this decline, historical user growth remains well within historical Pinterest standards.
Perhaps more importantly, advertisers were willing to pay a pretty penny to reach Pinterest’s user base of 454 million, as of June 30, 2021. Global average revenue per user (ARPU) has jumped 89% in the second quarter compared to the previous one. year, with an even more robust international ARPU up 163%. Since the international ARPU can be doubled several times over this decade, these overseas MAUs are Pinterest’s key to sustainable double-digit growth.
Ultimately, we’re still in the early stages of watching Pinterest monetize its platform and grow into a popular ecommerce destination. With a user base willingly sharing the things, places, and services that interest them, Pinterest simply needs to connect these motivated buyers with merchants who specialize in their interests.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.