Tesla and Two Other Stocks Trading at 52-Week Lows that Can Rebound Strongly
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Tesla and Two Other Stocks Trading at 52-Week Lows that Can Rebound Strongly

Three stocks (Tesla, Philip Morris International, GameStop Corporation) with three risk and reward levels.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

On Thursday, Sam Bankman-Fried was sentenced to 25 years in prison for one of the largest fraudulent financial schemes. When the FTX exchange collapsed at the end of 2022, he generated enormous fear, uncertainty, and doubt (FUD), crashing the entire crypto market.

At times like that, investors make fortunes. Those stuck to their fundamental analysis bought Bitcoin and altcoins at steep discounts. That decision positioned them to have over 4x gains in the present. 

Similarly, certain stocks have had a suppressed price, leading to near 52-week lows. Which stocks tick the fundamental box but are yet to rebound?

Tesla (NASDAQ: TSLA)

For the last 52 weeks, Tesla’s average stock price settled at $222.78 per share. This is 46% lower than TSLA’s all-time high of $409 in November 2021. Presently at $175, TSLA shares have gone down nearly 30% year-to-date, with another downward spike looking to revisit the yearly low of $153 per share.

There are many reasons to be both bullish and bearish. On one hand, TSLA stock has a higher market cap than Toyota (TM) and Ford Motor (F) combined. This suggests that investors are betting on the future of EVs rather than the present production of cars. 

Moreover, after acquiring Twitter for $44 billion, Elon Musk exposed himself to political vulnerability as the only major social media platform not controlled by the total state. Investors could also say that Tesla’s position in China continues to erode amid multiple EV newcomers like Li Auto.

On the other hand, it remains true that no Western EV company managed to popularize EVs as much as Tesla. More importantly, to scale EV production and lithium battery supply chain and gather data for self-driving capability. After all, Tesla’s EV dominance is demonstrated by the company’s charging standardization, becoming the North American Charging Standard (NACS).

Although EV adoption faces affordability hurdles and resale value, Tesla’s codenamed “Redwood” in 2025, at $25,000, will be a major milestone. Likewise, there is no sign that governments’ push towards a net-zero agenda is waning. Ahead of this inevitability, Tesla increased its year-over-year cash flow by 45% in Q4 2023, to $2 billion. 

Twelve months ahead, 32 analysts pulled by Nasdaq view the average TSLA price target at $198.72 vs the current $175 per share.

Philip Morris International (NASDAQ: PM)

For the last 52 weeks, the average Philip Morris (PM) stock price has been $94.04 per share. This is 5% lower than PM’s all-time high of $99.04 in February 2022. Presently, at $91.62, it is 4.8% from its yearly low of $87.23.

This is a stable range, which is not surprising given PM’s status as both a wide-moat and dividend stock. Even though the company is shifting to smokeless products, Philip Morris can still tap into a recurrent revenue stream of 1.3 billion global smokers. Much like Nvidia dominates the data center supply for generative AI, Philip Morris has an international market hold of 28%.

Given new investments to follow new smokeless trends, in the 2023 annual report, the company reported a 14.8% decline in operating cash flow to $9.2 billion. However, its earnings per share and operating net income have increased at 11% and 3.7%, respectively. 

Philip Morris offers a 5.68% dividend yield at a $5.20 per share annual payout. Twelve months ahead, 16 analysts pulled by Nasdaq position the average PM price target at $101.94 vs the current $91.62 per share.

GameStop Corporation (NASDAQ: GME)

Following the successful launch of Reddit (RDDT), there has been a resurgence of memetic energy. Thanks to social media coordination, the gaming retail chain was the main beneficiary of the trading phenomenon, alongside AMC Entertainment and other minor stocks. 

For the last 52 weeks, the average GameStop (GME) share price has been $17.89. This is 30% lower than its present price of $12.52 but very close to its 52-week low of $11.82. The company delivered mixed results on GameStop’s road toward a digital marketplace.

On Tuesday, GameStop’s Q4 2023 earnings report revealed a $6.7 million net income for the full year, significantly improving from the $313.1 million net loss in 2022. However, GameStop’s net sales are down 19% from the year prior at $1.8 billion. As a result, its earnings per share failed to beat the consensus of $0.25 at $0.22 reported.

Yet, the weekly dip of 9% may invite meme traders to elevate GME above the yearly low. Unlike the other two stocks, GME is on the pumpamentals spectrum rather than fundamentals for now.

What is your preferred vehicle for asset speculation, such as altcoins without earnings or meme stocks? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.