Stock turnarounds can happen when you least expect it. And with the opposite scenario imposing a rude awakening, it’s time to at least consider last year’s losers to make big splashes in 2024.

As shareholders of information technology stalwart Super Micro Computer (NASDAQ:SMCI) found out, it can be incredibly risky betting on a rip-roaring enterprise continuing to make additional headway. With so much enthusiasm baked into the price, the target company must perform even greater acts of pageantry. However, at some point, the magic runs out.

On the flipside, we have candidates for stock turnarounds. Just as the name implies, these enterprises lack any serious expectation. So, with standards at rock-bottom levels, any modestly positive performance can yield significant interest. Put another way, there are more low-hanging fruit to be plucked.

Granted, red ink can beget more red ink so the risk is ever present. Still, with certain names becoming overheated, these stock turnarounds may turn out to be surprisingly viable.

Philip Morris (PM)

At first glance, it’s understandable why many folks have decided to give up on Philip Morris (NYSE:PM). In the current political climate, big tobacco firms don’t command much sympathy. Worse yet, their underlying business appears to be under threat. With global smoking prevalence rates declining, Philip Morris appears to be fighting against the inevitable.

However, I don’t have the same feelings of doom and gloom as some other folks. Indeed, I genuinely believe it’s one of the candidates for stock turnarounds. For one thing, smoking prevalence may be fading but that’s not the same trend for every country. Further, Philip Morris – like other tobacco firms – are pivoting toward their heat-not-burn (or similar) devices.

Also, it’s important not to forget the financial situation. Sure, PM isn’t a value queen. However, it does offer excellent margins across the board and it’s consistently profitable. As a result, it pays a robust dividend yield of 5.76%. With a strong track record of consistent payouts, PM ranks among the stock turnarounds.

Gilead Sciences (GILD)

As one of the top biopharmaceutical companies, Gilead Sciences (NASDAQ:GILD) has been involved in multiple scientific ventures. Perhaps the enterprise is best known for its work regarding the treatment of HIV/AIDS. Thanks to its myriad innovations in the space, AIDS is no longer the guaranteed “final” sentence it once was. Instead, through proper care and management, patients can live long fulfilling lives.

However, Gilead’s relevance in the broader biotechnology space hasn’t exempted GILD stock from severe volatility. Just in this year alone, shares stumbled 14%. And in the past 52 weeks, GILD steadily eroded about 16% of equity value, frustrating its stakeholders. However, the red ink could represent a discounted opportunity among one of the top stock turnarounds.

Fundamentally, it’s arguably impossible to forever ignore such a successful company. In addition to its work in HIV/AIDS, it also forward therapeutics for hepatitis B, hepatitis C, influenza and Covid-19. Analysts peg shares a consensus moderate buy with an $87.06 price target, projecting nearly 22% upside potential.

Agco (AGCO)

On surface level, Agco (NYSE:AGCO) should rank among the top-tier relevant enterprises. As an agricultural machinery manufacturer, it plays an indelible role in the wider food value chain. However, analysts don’t view AGCO the same way. Since the start of the year, shares stumbled more than 10%. And in the trailing 52 weeks, it’s below parity to the tune of 21%.

Personally, the volatility appears overdone. In its most recent earnings disclosure, the company posted record net sales of $14.4 billion during 2023. This tally represented a 13.9% increase compared to 2022. Over the past three years, Agco’s revenue growth rate stands at 16.7%, above nearly 78% of the competition. Yet shares trade at only 0.57X trailing-year sales.

Adding to the mystery, AGCO’s forward earnings multiple sits at 8.41X. In contrast, the sector median stat comes in at just over 11X. Analysts rate shares as a consensus moderate buy with a $143.70 average price target. To me, it’s one of the top stock turnarounds.

Biogen (BIIB)

Headquartered in Cambridge, Massachusetts, Biogen (NASDAQ:BIIB) specializes in the discovery, development, and delivery of therapies for the treatment of neurological diseases to patients worldwide. According to the World Health Organization, an estimated 6.8 million pass every year due to neurological disorders. Further, the economic, social, and personal costs can be incredibly onerous.

So, it’s an arena that requires attention. However, BIIB fell sharply, down more than 18% this year. On one hand, it’s understandable why investors are concerned. To be blunt, neurological diseases represent a vexing situation for the biotech community. But on the other hand, it’s not as if healthcare professionals can simply give up.

For speculators willing to go the contrarian route, BIIB trades at only 15X trailing-year earnings (without non-recurring items). Further, the treatment market for neurological disorders may hit $125.6 billion by 2029. In 2021, the sector was worth $79.4 billion. Analysts are also confident regarding Biogen, pegging shares a moderate buy with a $297.67 target, implying 36% growth potential.

B2Gold (BTG)

A Canadian mining company, B2Gold (NYSEAMERICAN:BTG) owns and operates gold mines in Mali, Namibia and the Philippines. Fundamentally, B2Gold should be relevant from a pure business standpoint. Increasingly, advanced technological solutions such as electric vehicles require precious resources, including gold. As sophisticated industry demand rises, BTG should move northward too.

However, the Street has other ideas. Indeed, the market succumbed BTG to a more than 19% loss since the start of the year. In the trailing one-year period, the security declined by more than 24%. While the crimson stains don’t necessarily arouse confidence, BTG could be one of the stock turnarounds. In addition to the demand argument, B2Gold should also benefit from monetary policy.

Even with the best efforts of the Federal Reserve, inflation remains stubbornly high. If this circumstance isn’t adequately addressed, it’s possible – if not plausible – that BTG could shoot higher. Interestingly, analysts rate shares a consensus strong buy with a $4.28 average price target.

Transocean (RIG)

An American drilling company, Transocean (NYSE:RIG) is the world’s largest offshore drilling contractor based on revenue. While the company historically suffered controversies, it’s also vital to (hydrocarbon) energy security. Still after enjoying a stunning rise in late 2022 through the summer of last year, RIG stock has looked shaky.

And that’s being diplomatic. Since the beginning of the year, Transocean suffered a loss of nearly 22%. In the trailing six months, it’s down almost 41%. However, it’s possible that RIG may rank among the stock turnarounds thanks to booming economic metrics. With the U.S. GDP coming in hotter than anticipated along with consistently strong jobs reports, RIG stock may swing higher based on increased demand for hydrocarbons.

Of course, several headwinds help explain Transocean’s decline, including recent operating losses. However, the aforementioned economic forces could help lift sentiment. Analysts are overall bullish on RIG stock, predicting that it will hit $8.42 per share. Further, the high-side target clocks in at $12, implying over 145% upside potential.

Ideal Power (IPWR)

Just based on its financial print, Ideal Power (NASDAQ:IPWR) doesn’t exactly appeal as one of the possible stock turnarounds. While the company commands a robust cash-to-debt ratio of nearly 49X, that’s one of the few positives. On the bearish side, there’s an embarrassment of riches, from the Altman Z-Score of 0.86 (indicating deep distress) to a sky-high price-to-sales ratio of almost 273X.

Since the beginning of the year, IPWR lost more than 12%. In the past 52 weeks, it’s off the mark by nearly 45%. However, if you believe in the underlying narrative, Ideal Power could be an ideal contrarian opportunity. Per its website, the company is pioneering the development and commercialization of its patented bidirectional semiconductor power switch.

This tech creates highly efficient and ecofriendly energy control solutions for electric vehicles, EV charging, renewable energy and other innovations. Fundamentally, this development may reduce conduction and switching losses, thereby improving operational efficiencies.

Benchmark’s David Williams believes in the tech, rating IPWR a “buy” with an $18 price target, implying 165% upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.