3 Rebounding Undervalued Stocks to Buy Before They Soar

Market Overview - The market has experienced a divergence, with tech stocks rallying while many companies face declining valuations due to worsening macroeconomic conditions [1] - There is potential for undervalued stocks to rebound as the economic cycle shifts, presenting investment opportunities [1] Verizon Communications (VZ) - Verizon is a leading telecommunications company facing challenges due to high debt and sluggish growth, but the outlook may improve as interest rates decrease [2] - The company reported net interest losses of $1.6 billion in Q2 but still managed to post profits and maintain a 6.5% dividend yield, with the stock up 21.5% over the past year [2] - Margin expansion is expected as interest expenses ease, making Verizon's dividend more attractive to investors [3] Barrick Gold (GOLD) - Barrick Gold is a prominent gold and copper mining company benefiting from rising gold prices, despite being down nearly 30% from its 2020 peak [5] - The company reported Q2 revenue of $3.16 billion, a 12% year-over-year increase, and adjusted EPS surged 68% to 32 cents [5][6] - Barrick's gold production guidance for 2024 remains at 3.90-4.30 million ounces, and analysts are bullish on the stock, with all nine rating it a buy [6] Dollar General (DG) - Dollar General operates over 20,000 stores and has seen its stock decline 13.5% year-to-date, facing near-term pressures such as increased shrink and downgrades from analysts [7] - Despite challenges, the company beat earnings estimates in Q1 with a 6.1% sales increase to $9.91 billion and generated $363 million in net income [7] - The stock has rebounded over 12% from its October 2023 low, and Goldman Sachs has added it to its Conviction Buy list with a $169 price target, indicating potential for further upside [8]