10 Blue-Chip Stocks at All-Time Lows
In this article, we will take a look at the 10 blue-chip stocks at all-time lows. To see more such companies, go directly to 5 Blue-Chip Stocks at All-Time Lows.
The inflation storm and subsequent rate hikes by the Federal Reserve have left investors on the back foot as a strange skepticism has taken over the market. After every couple of weeks investors find themselves looking over their shoulders for that next important piece of data or the next Federal Reserve meeting, always guessing what the central bank’s next move might be and in what direction the economy would go. The stock market might gain when the Federal Reserve will announce that it’s pausing interest rate hikes for now. And then the stock will fall yet again when the next jobs report or inflation data will show the Fed will have to start raising rates again. In this volatile environment one would wonder what the market maestros would be doing? Legendary investors who became billionaires investing in the stock market would have seen it all: the rate hikes, inflation surges, geopolitical headwinds, recessions and market turmoil. What was their secret tool to survive or even thrive through market storms?
Lessons from Paul Tudor Jones
Turning to legendary value investor Paul Tudor Jones gives us some glimpse of well thought out strategies while investing in the stock market. Paul Tudor Jones has a spectacular track record when it comes to returns. As of 2014 Jones’ fund never posted a single losing year in a 25-year period. Jones have seen it all and over the years his investment philosophy evolved and matured. The single biggest lesson that pervades through Jones’ investing philosophy is his vehement dislike for losing money. He calls himself one of the most conservative investors in the world. In a report compiled by market research firm Macro Ops, which talks at length about the journey of Jones in the stock market and how his thought process evolved, one quote of Jones that caught our attention was:
“The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge. Because I think there are certain situations where you can absolutely understand what motivates every buyer and seller and have a pretty good picture of what's going to happen. And it just requires an enormous amount of grunt work and dedication to finding all possible bits of information.”
Granted that knowledge equips the investor with an immense power and confidence, the real secret behind how Jones became a conservative, risk-averse investor is the huge losses that Jones suffered during the start of his investing journey when he was very young. Time taught Jones to never let ego and overconfidence get in the way of making rational decisions. The same report quotes Jones as saying:
“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.”
Jeremy Siegel's Latest Thoughts on the Stock Market
Talking to CNBC, Wharton professor and famous financial analyst Jeremy Siegel said that people might think that the Federal Reserve would have an idea of what the market or economy might look like in 2024 but that’s not the case. The professor said being the central bank, the Fed would sound hawkish but they know that it would not make sense to trade recession for millions of layoffs for a slight reduction in inflation. Siegel also said that the Federal Reserve should not increase interest rates given the political environment. Siegel thinks the only reason why the Fed would turn to decreasing interest rates would be an economic slowdown or huge rise in unemployment because the government cannot afford a full-blown recession during an election year.
Siegel also said that equities could remain firm until the end of this year because the stock market loves when economic data shows a strong economic activity. That’s why, according to Siegel, the stock market rallies when we see strong economic activity numbers despite rising inflation.
Siegel also questioned the rationale behind the Fed’s target of bringing inflation down to 2%. He said if they try to bring the inflation down to 2% by slamming the brakes and slowing down the economy, they will achieve the target but the results would be ugly.
Answering a question whether he would advise investors to invest in the market right now, the professor said “absolutely,” adding that the market is undervalued.
Photo by Chris Liverani on Unsplash
Our Methodology
For this article we conducted a rigorous research to find notable, famous or established companies that are trading near their all-time lows or hit all-time lows earlier this year. Some of these companies hit their new lows in close to 10 years in 2023. We included those companies in this article too to give the readers an overall outlook on the most important companies that are currently down but could gain value in the future.
Blue-Chip Stocks at All-Time Lows
10. Beyond Meat, Inc. (NASDAQ:BYND)
Market Cap: $634.8M
Beyond Meat, Inc. (NASDAQ:BYND) shares are trading around its all-time lows. Beyond Meat, Inc. (NASDAQ:BYND) has lost about 36% over the past one year. Cowen recently gave an Underperform rating to Beyond Meat, Inc. (NASDAQ:BYND) due to its deteriorating financial position.
In August Beyond Meat, Inc. (NASDAQ:BYND) took a hit after the company posted weak Q2 results. For the full year Beyond Meat, Inc. (NASDAQ:BYND) sees its net revenue in the range of $360 million to $380 million, which would be a decrease of 14% to 9% compared to 2022.
Of the 910 hedge funds in Insider Monkey’s database, 15 funds reported owning stakes in Beyond Meat, Inc. (NASDAQ:BYND).
9. IHS Holding Limited (NYSE:IHS)
Market Cap: $1.5B
IHS Holding Limited (NYSE:IHS) holdings operates communications infrastructure in Africa. In August IHS Holding Limited (NYSE:IHS) posted second quarter results. GAAP EPS in the quarter came in at -$3.73, missing estimates by $3.88. Revenue in the period jumped 17% year over year to $546.2 million, beating estimates by $20.06 million.
As of the end of the second quarter of 2023, 15 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in IHS Holding Limited (NYSE:IHS). The biggest stakeholder of IHS Holding Limited (NYSE:IHS) during this period was
8. Peloton Interactive, Inc. (NASDAQ:PTON)
Market Cap: $1.6B
While it’s questionable to label Peloton Interactive, Inc. (NASDAQ:PTON) as a blue chip company, the stock nonetheless is quite famous and has repute. After all Peloton Interactive, Inc. (NASDAQ:PTON) was a Wall Street darling during the pandemic days. It has since fallen from its grace and is struggling to find direction. Peloton Interactive, Inc. (NASDAQ:PTON) shares have lost about 50% in value over the past one year.
As of the end of the second quarter of 2023, 46 hedge funds tracked by Insider Monkey had stakes in Peloton Interactive, Inc. (NASDAQ:PTON). The biggest stakeholder of Peloton Interactive, Inc. (NASDAQ:PTON) during this period was Ricky Sandler’s Eminence Capital which owns a $59 million stake in the company.
7. Lucid Group, Inc. (NASDAQ:LCID)
Market Cap: $11.8B
EV company Lucid Group, Inc. (NASDAQ:LCID) is trading near its all-time lows. Lucid Group, Inc. (NASDAQ:LCID) has lost about 64% over the past one year. Lucid Group, Inc. (NASDAQ:LCID) is also one of the stocks Jim Cramer is recommending investors to sell.
As of the end of the second quarter of 2023, 18 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Lucid Group, Inc. (NASDAQ:LCID).
Recently Lucid Group, Inc. (NASDAQ:LCID) talked about its future plans in Q2 earnings call.
“Work has been well underway on our next-generation power technology for our midsized platform. Now also in September, we plan to commence production of Sapphire. Preproduction has, in fact, already begun, and we’ve held a number of viewings for media and early customers already. Sapphire will boast a 0 to 60 time of 1.89 seconds, a 0 to 100 miles an hour time of 3.84 seconds, and a standing-quarter mile time of 8.95 seconds. But whilst I think the power and the performance is impressive, I can only begin to tell you how immensely delightful and responsive Sapphire is just to drive normally, even when you choose to exploit a mere fraction of the performance. This, to me, is one of its most surprising, engaging, even endearing attributes. Sapphire fuses hypercar performance, delightful handling, the tractability and turning response of torque vectoring with everyday usable in an unprecedented combination.”
Read the full earnings call transcript here.
6. Royalty Pharma plc (NASDAQ:RPRX)
Market Cap: $11.8B
Royalty Pharma plc (NASDAQ:RPRX) ranks 6th in our list of the all-time low stocks. In August Royalty Pharma plc (NASDAQ:RPRX) posted second quarter results. Consolidated net income in the period came in at $351 million. Revenue in the quarter inched up 0.4% year over year to $538 million, surpassing estimates by $1.41 million.
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Disclosure: None. 10 Blue-Chip Stocks at All-Time Lows is originally published on Insider Monkey.
