3 Stocks at 52-Week Lows Poised for a Powerful Rebound: June Edition

Group 1: Market Overview - The market has seen impressive gains, but not all stocks have benefited equally, with some stocks at 52-week lows presenting attractive risk-reward setups for rebound [1] - Short-term fundamentals for these stocks may be weak, but their long-term outlook remains strong, with earnings growth expected to improve materially in 2025 [1] - Companies can enhance stock value through strategies like increasing buybacks, making these stocks appealing for contrarian investors [1] Group 2: Intel (INTC) - Intel experienced an 80% return in 2023 but has since underperformed, currently being one of the poorest performers in the S&P 500 [2] - The company reported a $7 billion operating loss in its foundry business, with a break-even point now expected in 2027, which disappointed investors [2] - Intel aims to become a leading integrated device manufacturer, investing heavily in R&D and manufacturing to regain its competitive edge [3] - The U.S. government supports Intel's ambitions with $8.5 billion from the CHIPS Act and potential additional funding of $11 billion [3] - Management has announced $15 billion worth of business, indicating progress in its IDM 2.0 strategy [3] Group 3: Albertsons (ACI) - Albertsons is at a 52-week low despite a merger agreement with Kroger, which has faced regulatory challenges [4] - The FTC has sued to block the merger, but there is still a likelihood that it will close, especially after divestiture plans were announced [4][5] - Analysts upgraded Albertsons to "buy," citing increased probability of the merger closing, with potential upside of over 30% for shareholders [5] - ACI stock trades at 7 times forward adjusted EBITDA, indicating it is a bargain opportunity [5] Group 4: Yum China (YUMC) - Yum China is facing challenges due to a sluggish economic recovery in China, impacting consumer discretionary spending [6] - The company operates 15,022 restaurants and plans to expand to over 20,000 by 2026, supported by urbanization and a rising middle class [6] - There is significant growth potential in the $625 billion Chinese restaurant market, with chains accounting for only 18% of restaurant spending compared to 61% in the U.S. [6] - Yum China boasts restaurant margins exceeding 18% and plans to return over $3 billion to shareholders between 2024 and 2026 [7] - The stock is trading at 16 times forward earnings, making it another candidate for rebound [7]