With the markets in the doldrums, many of these popular stocks are trading at historical lows. Hence, here are 4 popular stocks that you should probably take seriously.
Clover Health (CLOV)
Shares of Medicare Advantage insurer Clover Health (NASDAQ:CLOV) have taken a massive haircut since it fell out of favor with retail investors.
Still, its subscriber base is growing at a healthy pace, and with secular tailwinds in play, you should probably side with the bulls.
CLOV is looking to boost its profitability metrics by absorbing new members on the platform and slowing down expansion. Such a move is imperative to control its profitability metrics, such as its Medical Care Ratio (MCR).
It’s already delivering on those promises. CLOV’s earnings per share ratio improved to a negative 22 cents in the second quarter from a negative 78 cents posted in the same quarter last year.
AMC (AMC)
AMC (NYSE:AMC) was one of the two original meme stocks that went parabolic last year.
AMC stock rallied throughout the year in spurts, but it’s taken a hammering so far this year. Risky investments have fallen out of favor with investors, and AMC, with its massive debt load, certainly fits the bill.
Recent quarterly performances have shown that there’s still a massive growth runway in the movie theater business despite the popularity of streaming.
Looking ahead, the content slate for the tail-end of the year is led by some of the most iconic franchises, which bodes well for AMC and its peers. It comes with a lot of risk, but AMC has plenty of upside potential and is investable at current prices.
WiMi Hologram Cloud (WIMI)
Shares of WiMi Hologram Cloud (NASDAQ: WIMI) have been in an uptrend for the last month, but its stock price is still down more than 80% since its high in February last year. For more than a year, Chinese stocks, including WIMI, have suffered a series of blows. However, WiMi’s business continues to thrive. The divergence between the stock’s sharp decline and its ability to grow is enough to earn it a spot on the list of popular tech stocks.
One point to note is that the Metaverse market is expected to grow at a compound annual growth rate of 50.74% between 2022 and 2030, and as a leading player in the holographic AR industry, and WiMi will be a major beneficiary of the positive development of the industry.
Several of its metaverse products have been certified by FCC and entered the American market, which improves the company’s growth space in the next few years, and this move may promote WiMi’s long-term growth capacity.
WIMI stock will likely not regain all of its previous glory, but this fast-growing company should command a better premium. This is a growth stock, and trying to time its bottom perfectly is nearly impossible. Therefore, with determination to find potential scramble zones, which often act as strong support, it can turn into a bottom in hindsight.
Snap (SNAP)
Social media giant Snap (NYSE:SNAP) has had a torrid time on the stock market this year. The headwinds in the advertising space have significantly weighed down its results of late.
Its engagement metrics remain robust, though, as evidenced by its second-quarter results. Additionally, its latest Snapchat+ service has attracted a million paying subscribers in less than six weeks of its release. Hence, the stock is investable at its current beaten-down valuation but needs to post better profitability metrics as we advance.
Snapchat has been a hyper-growth business that’s generated over 60% revenue growth on average over the past five years.
With the proliferation of similar mobile apps, including its biggest competitor in TikTok, such numbers may be virtually impossible to achieve for SNAP. Nonetheless, its daily active users continue to grow by double-digit margins, and the long-term potential of Snapchat+ makes it an attractive bet at current prices.
