The Nasdaq is soaring, but these 3 stocks are near their 52-week lows

If you’re looking for bargains in the stock market, you may want to consider currently underperforming investments with plenty of long-term upside potential. One way to spot these types of stocks is to limit your search to those that are near their 52-week lows. Typically, these companies experience bad news or a worrying outlook, which can make them risky buys. But if they prove their skeptics wrong, they could offer you better-than-expected returns.

Intel (NASDAQ:INTC), Cisco Systems (NASDAQ:CSCO)And PepsiCo (NASDAQ:PEP) are all down year to date, but they could still prove to be good investments to hold for years to come.


Intel is proof that simply being a chipmaker is not a recipe for a higher stock price this year, despite all the hype around artificial intelligence (AI). With shares down 40% since January, it’s clear that investors aren’t excited about the company’s prospects.

Its revenue growth rate was a fairly modest 9% in the first quarter. But what’s more concerning is its net loss of $437 million, although that’s at least a marked improvement over the year-earlier period, when Intel posted a loss net of $2.8 billion.

I am optimistic that Intel can change the situation given the need for the United States to strengthen its domestic chip manufacturing capacity. Currently, U.S. technology companies rely heavily on foreign foundries, and the government is providing significant incentives and support to make it easier for domestic companies to succeed in this area and become important chip suppliers in the future.

This will take some patience, but as Intel management focuses on reducing costs and pursuing opportunities in manufacturing computer chips, this could be a great contrarian investment to hold on to, provided you’re willing to accept some risk. Currently, the shares of a technology company is trading within a dollar of its 52-week low of $29.73.

2. Cisco Systems

Networking and IT infrastructure giant Cisco could be a good long-term buy. As businesses modernize their infrastructure to meet the growing needs of their AI-powered computers, demand for Cisco products and services will likely increase. It provides solutions that address emerging AI trends, including AI-driven security and software options to help businesses get the most out of their next-generation technologies.

The problem is that it may take some time for much of this demand to materialize, as companies are likely selective about their spending in the current high interest rate environment. Controlling costs will remain a priority for businesses until borrowing conditions improve. For now, Cisco might have a tough road ahead. The company’s product revenue declined 19% to just over $9 billion during its fiscal third quarter, ended April 27.

As investors focus on stocks already benefiting from AI growth, Cisco simply doesn’t stand out. However, this could change,…

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