It’s been a rough few weeks for stocks. The Nasdaq Composite (NASDAQINDEX: ^IXIC) now sits more than 30% below its November high after dropping to a new multi-month low this week. And the composite is a weighted average of every Nasdaq-listed ticker. For some stocks, the declines have been much, much worse.
As tough as it may be to believe right now, however, there are long-term opportunities among the most beaten-down names. You just have to find the guts to step in even knowing that this bear market may not be at its cyclical bottom just yet. Here’s a closer look at three of your best bets right now from this humbled group of stocks.
Say what you want about the fallout from the budget-slashing initiative Lyft (NASDAQ: LYFT) announced last month — just don’t say the ride-hailing business model is fatally flawed. There are enough consumers out there who don’t own cars (or don’t want to drive one to a particular destination), and the market is slowly but surely figuring out how many rideshare drivers it needs, as well as the right price for their service. Lyft made huge bottom-line progress last quarter, and on an adjusted basis actually produced a net operating profit.
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It still needs more scale to convincingly get over the profit hump once and for all, mind you. But that looks like it’s coming. Analysts’ expectations for top-line growth of 31% this year followed by 25% next year should be enough to lift the company to non-GAAP earnings of $0.32 per share in 2022, and then further upward to $1.10 per share in 2023.
Investors haven’t been pricing this prospective upside into the stock of late. Lyft shares have slid more than 70% in the course of the past 12 months, and set a new 52-week low earlier this week. It’s possible the market could be concerned about the prospect of a recession as well as the unknowns of sky-high oil prices. As contractors, Lyft drivers pay for their own gasoline, making driving in this environment an expensive endeavor. The sheer severity of the sell-off, however, arguably overstates the depth of the challenges Lyft actually faces.
Tandem Diabetes Care
Tandem Diabetes Care (NASDAQ: TNDM) offers solutions that help diabetics control and combat their condition. While it competes with much bigger companies such as DexCom and moderately bigger ones like Insulet, Tandem’s customers still appreciate the power of its t:slim X2 insulin pump and its accompanying software. It can be used by itself or along with a continuous glucose monitoring system, but more than …….