3 Top Ranked Losing Stocks Poised to Outperform (XPEL, ACMR, MNDY)

Group 1: Market Overview - The article discusses three underperforming stocks: XPEL, ACM Research, and Monday.com, which have strong fundamentals and Zacks Ranks, presenting potential investment opportunities for 2025 [3][4][13] - The "turn-of-the-year" effect may lead to a rally for these stocks, despite their current underperformance [4][14] Group 2: XPEL - XPEL is a leader in automotive protection products, known for paint protection films and window tinting, and has seen a 25% decline this year [6] - The stock is trading at a historically discounted valuation of 23.2x forward earnings compared to a five-year median of 37.5x, making it attractive for value investors [7] - XPEL has delivered an impressive 40% annualized return since 2019, indicating strong long-term growth potential [6][7] Group 3: Monday.com - Monday.com is a leading work management platform that has performed well but still lags behind the broader market, providing an entry point for growth investors [8] - The stock has a Zacks Rank 1 (Strong Buy) and is projected to see EPS growth of 42.5% annually over the next three to five years [9] - Concerns regarding automation's impact on software companies appear overblown for established platforms like Monday.com [9] Group 4: ACM Research - ACM Research specializes in advanced cleaning solutions for the semiconductor industry, generating most of its revenue in China, which exposes it to geopolitical risks [10] - The stock's forward P/E of 14x is significantly below its five-year median of 28.1x, indicating a historically discounted valuation [11] - With a Zacks Rank 1 (Strong Buy), ACMR is diversifying its geographical sales base to mitigate risks and capitalize on growth opportunities [11]