“The #1 Tech Opportunity of the Decade”

On February 8th, Luke Lango is making his biggest call of 2023. He’s recommending technology (that you’ve likely never heard of) that could help 122 million people… And mint up to $3 trillion in wealth.

Wed, February 8 at 8:00PM ET
 
 
 
 

7 Beaten-Down Stocks That Can Make You a Millionaire by 2030

  • Here are seven beaten-down names that can become millionaire-maker stocks.
  • Tesla (TSLA): The electric vehicle maker’s share price has been falling since Elon Musk bought Twitter.
  • CrowdStrike (CRWD): This cybersecurity firm’s stock is down despite exceptional earnings and growing demand.
  • Eli Lilly (LLY): A new blockbuster obesity drug could send this stock to the stratosphere.
  • Salesforce (CRM): The world’s biggest cloud computing company is ripe for a comeback.
  • Netflix (NFLX): The latest earnings and subscriber numbers have put the streaming giant on the comeback trail.
  • Ford (F): The Detroit automaker is on track to take market share in the competitive EV space.
  • Disney (DIS): The return of Robert Iger has many analysts predicting the worst is over for the entertainment giant.
millionaire-maker stocks - 7 Beaten-Down Stocks That Can Make You a Millionaire by 2030

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A lot of great stocks have been thrown out with the bath water this year. While the stocks of many poorly run companies are deservedly down 70% or more, the share prices of exceptional companies have also been pulled lower by the market carnage. This presents an exciting buying opportunity for investors who are willing to be patient and wait for the stock market to rebound. The shares of companies that are sector leaders can be bought right now at deeply discounted prices. In time, these stock prices will no doubt recover, leading to massive gains for investors. The key is to summon the courage to buy these names now while prices fall and hold on until markets inevitably reverse higher. Here is a list of seven beaten-down, millionaire-maker stocks.

TSLA Tesla $185
CRWD CrowdStrike $138
LLY Eli Lilly $366
CRM Salesforce $152
NFLX Netflix $276
F Ford $13.80
DIS Disney $95

 

Tesla (TSLA)

Tesla Motors (TSLA) now an SP500 company with a busy Pond Springs location in northwest Austin, TX

Source: Roschetzky Photography / Shutterstock.com

The shares of electric-vehicle maker Tesla (NASDAQ:TSLA) are down an ugly 48% this year and trading at $185. The stock’s situation has only gotten worse since TSLA CEO  Elon Musk completed his $44 billion acquisition of Twitter. Investors and analysts have expressed concern with the fact that Musk is now working out of Twitter’s headquarters and seems to be devoting all his time, talent and energy to turning around the platform.

Concerns that Musk is neglecting Tesla and its operations in favor of Twitter has TSLA stock trending lower. (The share price was also brought down by a 3-for-1 stock split executed this past August). Ongoing Covid-19 lockdowns in and around Shanghai, where Tesla has a major manufacturing plant, as well as safety issues, are also pressuring TSLA stock.

But in the long-term, the EV maker still looks to have a bright future, and investors might be kicking themselves down the road for not buying shares of Tesla now at distressed prices.

The median price target on TSLA stock among 35 analysts who cover the company is $304, which is 64% higher than the shares’ current levels.

CrowdStrike (CRWD)

A sign with the Crowdstrike (CRWD) company logo

Source: VDB Photos / Shutterstock.com

With the shares of cybersecurity firm CrowdStrike (NASDAQ:CRWD) down 38% over the last 12 months, investors seem to have kicked the company to the curb. However, investors who hit the sell button on CRWD stock are taking a short-term view and missing out on a millionaire-maker stock. Cybersecurity is becoming more important than ever in the lives of companies and individuals. And Fortune Business Insights forecasts that the global cybersecurity market will grow from $155.83 billion this year to $376.32 billion in 2029, for a compound annual growth rate (CAGR) of 13.4%.

A true innovator, CrowdStrike is leading the way when it comes to the technology used to safeguard private sector companies, governments and ordinary citizens from cyberattacks. Protecting data, intellectual property, and money is not viewed as a discretionary item. Organizations large and small must invest in cybersecurity these days. And the demand for digital protection is only intensifying.

Despite the downturn in its share price, CrowdStrike has been knocking it out of the park with its earnings. The company most recently announced quarterly revenue of $535.15 million, up nearly 60% from a year earlier, as well as earnings per share of 36 cents, which was a year-over-year increase of 227% from 11 cents. The EPS was nearly 30% better than Wall Street analysts, on average, had forecast. The analysts’ median price target on CRWD stock is $230, which would be 67% higher than the current level of $138 a share.

Eli Lilly (LLY)

dollar sign written with pills spilled from a medicine bottle

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The shares of Eli Lilly (NYSE:LLY) are not down this year. In fact, LLY stock is up 35% so far in 2022, making it one of the top performers in the S&P 500 index. However, it is down a few percentage points from its 52-week high. And even with this year’s massive outperformance, the stock, which now trades at $366 a share, is expected to go much higher in the coming years should its obesity drug, Tirzepatide gain approval from the FDA.

With nearly 40% of the world’s population considered overweight or obese, some analysts are predicting that Tirzepatide could be the biggest-selling drug ever produced. If that prediction proves true, Tirzepatide would take its place alongside other blockbuster prescription drugs from Eli Lilly such as Prozac that’s used to treat depression and Cialis for erectile dysfunction. Those medications, and others, have powered Eli Lilly to annual sales of $30 billion.

While not yet commercially available, Tirzepatide has been granted “fast track” designation by the FDA. When and if it is approved, the medication could help more than 2 billion adults worldwide who struggle with their weight. It could also enable LLY to become one of the millionaire-maker stocks. The median price target on LLY stock is $394.50, significantly above its current price.

Salesforce (CRM)

lose up of Salesforce (CRM) logo displayed on one of their towers in downtown San Francisco

Source: Sundry Photography / Shutterstock.com

The shares of Salesforce (NYSE:CRM), the largest cloud computing company in the world, are on sale right now. Down 48% in the past 12 months at $152 a share, CRM stock is trading at the same level that it was at in 2019 before the Covid-19 pandemic disrupted our lives. Much of the decline in Salesforce’s stock price can be attributed to the fears of a slowdown in the demand for its cloud computing services. But like cybersecurity, cloud computing, particularly when it comes to data storage, is now entrenched and a necessity for companies.

Still, investors’ irrational fears were exacerbated when Salesforce issued its most recent earnings. The company beat Wall Street expectations and announced that it’s buying back $10 billion of its own stock. But CRM lowered its full-year guidance, making investors and analysts nervous and pushing the stock lower as a result. However, since October’s inflation data came in better than expected, CRM stock has rallied 11%, suggesting better days lie ahead for the shares. There are also indications that corporate spending on cloud computing services is steadily growing.

The median price target on CRM stock is $211.50, which is nearly 40% above where the shares are currently trading.

Netflix (NFLX)

The Netflix logo on a tablet with earbuds and a bowl of popcorn nearby.

Source: Riccosta / Shutterstock.com

Netflix’s (NASDAQ:NFLX) stock has been hammered this year. After reporting earnings and subscriber growth figures that came in below analysts’ mean outlook for two consecutive quarters, the company’s share price fell as low as $166. That amounted to a decline of 75% from the $663 that the stock was trading at in November 2021. While NFLX stock has recovered in recent months, it remains down 57% from 12 months ago, and, at $276 a share, looks like a bargain right now.

The streaming giant’s  third-quarter earnings showed that the company is on the mend. Its shares rose 13% in a single day after the company posted better-than-expected Q3 results, earning $3.10 a share on $7.9 billion of revenue. The real driver of NFLX stock, however, was the 2.4 million net new subscribers that the company added in the quarter. This was more than double what the company had forecast and reversed the subscriber losses seen in the first two quarters of the year.

Management attributed the strong results to hit TV shows and movies such as Stranger Things and The Gray Man and said it expects to add 4.5 million new subscribers in the current quarter. Analysts are now more bullish on NFLX stock, with JPMorgan upgrading the stock to “overweight” from “neutral” following the Q3 print. The median price target on the stock is $307 a share, roughly 10% above its current level.

Ford (F)

A Ford (F) sign hangs on a glass wall in Kiev, Ukraine.

Source: Vitaliy Karimov / Shutterstock.com

Don’t sleep on Ford Motor Co. (NYSE:F). The legendary Detroit automaker’s share price has been beaten down 37% this year and now changes hands at $13.80 per share. Investors are focusing on Ford’s near-term difficulties with global supply chains that have made it hard for the automaker to source the parts needed for its vehicles, which has led to a slowing of its production.

But in the long term, there’s plenty to like about F stock. The company is pushing hard into electric vehicles and has made no bones about its ambitions to challenge market leader Tesla for supremacy in the space.

Electric versions of iconic Ford vehicles such as the Mustang sports car and F-150 pickup truck could help the Detroit automaker gain market share and eventually become a global leader in the fast-growing EV sector, pushing its share price to new heights.

Walt Disney Co. (DIS)

an image of mickey mouse on a yellow background to represent disney (DIS)

Source: ilikeyellow / Shutterstock.com

Is the worst over for the Walt Disney Co. (NYSE:DIS)? Down nearly 40% on the year and trading at $95 per share, DIS stock looks to have been forsaken by investors. The company has certainly been through the ringer since the global pandemic began in March 2020, forcing it to close its theme parks and shelve its theatrical movies. But now, the return of Robert Iger as Disney’s CEO has many analysts and investors feeling more optimistic about the long-term outlook of DIS stock.

The ouster of former CEO Bob Chapek was seen as necessary following two tumultuous years at the helm of the Mouse House. Slowing growth at the Disney+ streaming service and a ghastly recent earnings print were viewed as the nail in Chapek’s coffin.

Now Iger has returned on a two-year contract at Disney and will try to right the ship. At the same time, the operating environment appears to be improving at Disney with its theme parks back at full capacity and its movies back in theaters.

Analysts’ median price target on DIS stock is $120 a share, which is 25% above its current levels.

On the date of publication, Joel Baglole held a long position in DIS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

  


Article printed from InvestorPlace Media, https://investorplace.com/2022/11/7-beaten-down-stocks-that-can-make-you-a-millionaire-by-2030/.

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