As much as the market has had impressive gains, the tide hasn’t lifted all boats. Some stocks are languishing near lows due to their short-term challenges. However, there are some rough diamonds that just need a little polishing for their value to shine through. Indeed, these stocks at 52-week lows for rebound present an attractive risk-reward setup going forward.

Although these stocks’ short-term fundamentals have been murky, their long-term outlook remains excellent. Their earnings growth prospects might be sluggish this year but will improve materially in 2025. Furthermore, the management of these companies can pull additional levers, such as increasing buybacks, to boost the stock.

Lastly, another reason to become bullish on these stocks is their lower forward multiples compared to the market. While everyone flees these stocks, it’s time to take a contrarian approach and load up on shares. The following stocks at 52-week lows for a rebound will reward patient investors.

Intel (INTC)

Intel (NASDAQ:INTC) had a great 2023, bagging an 80% return. However, the stock has given up some of those gains and is now one of the poorest-performing stocks in the S&P 500. That said, the long-term growth story is attractive, and it’s one of the stocks at 52-week lows for rebound.

The company’s woes began in early April after it revealed a $7 billion operating loss for the foundry business. Moreover, management disclosed that this segment would only break even in 2027, later than investors expected. Investors didn’t receive this news well.

Intel aims to become a leading integrated device manufacturer, which means it will design and manufacture chips. Therefore, it’s investing heavily in research and development and manufacturing facilities to return to leading-edge chip manufacturing. With Taiwan Semiconductor Manufacturing (NYSE:TSM) as the only major competitor, Intel can make significant inroads in leading node production.

Even better, this ambition is supported by the U.S. government’s initiatives to bring back chip manufacturing. Intel has already received $8.5 billion in funding from the CHIPS Act and is in line for an additional $11 billion.

The market does not appreciate Intel’s foundry business at today’s prices. Already, management has announced $15 billion worth of business. Indeed, the IDM 2.0 strategy has started taking shape.

Albertsons (ACI)

In October 2022, Kroger (NYSE:KR) and Albertsons (NYSE:ACI) announced a definitive merger agreement. Initially, Albertson soared but quickly gave back those gains as investors began to price in the complexities of the deal. Indeed, investors’ fears were confirmed after politicians, individual states and the Federal Trade Commission challenged the deal.

Despite these regulatory headwinds, Albertsons remains one of the top stocks at 52-week lows for a rebound. First, although the FTC has sued to block the deal with the trial in August, there is a likelihood that the deal will close.

Kroger and Albertson agreed to divestitures to quell regulatory fears about the merger’s anticompetitive effects. On April 22, they announced an updated divestiture plan with 166 stores. Now, they will sell a total of 579 stores to C&S.

Analysts at Roth MKM upgraded the stock to “buy” arguing that the new package has increased the probability that the $25 billion or $34.1 per share deal will close. Already, Albertson has paid a $6.85 per share special dividend announced as part of the deal, leaving $27.25 in value. If the deal closes, shareholders could realize over 30% upside.

ACI stock trades at 7 times forward adjusted EBITDA, even on a standalone basis. Therefore, in either scenario, the stock is a bargain opportunity.

Yum China (YUMC)

China’s economic recovery has been tepid, with consumers reluctant to spend. As a result, consumer discretionary stocks like Yum China (NYSE:YUMC) are bearing the brunt of this weakness.

Yum China is the largest restaurant chain in China, with 15,022 restaurants as of the end of the first quarter. Its restaurant base includes flagship brands like KFC and Pizza Hut and upcoming ones like Taco Bell, Huang Ji Huang and Little Sheep. Despite the current weakness, the long-term trajectory of this China-based restaurant chain is intact.

In terms of store growth, the company plans to grow to over 20,000 stores by 2026. Urbanization trends and a rising middle class in China will support this growth. Over 1,000 cities have no KFC presence, so there is ample growth runway in the $625 billion Chinese restaurant market. Furthermore, chains account for 18% of restaurant spending, compared to 61% in the U.S., presenting a huge opportunity.

Even better, Yum China is one of the best operators. With restaurant margins exceeding 18%, this company can drive incredible shareholder value. In its Q1 2024 presentation, management outlined a plan to return over $3 billion to shareholders between 2024 and 2026. At 16 times forward earnings, this one is among the stocks at 52-week lows for rebound.

On the date of publication, Charles Munyi did not hold (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.