If you’re on the lookout for some promising turnaround stocks to add to your investment portfolio, then Amazon, Roku, and Alibaba might just be the ones to consider. Let’s dive in and explore why these three stocks are primed for significant upside potential in the coming years.
First up, we have the e-commerce giant Amazon. While the stock has already seen a solid 61% increase over the past year, it’s still trading 16% below its previous high in 2021. The company’s AWS segment witnessed a robust 29% year-over-year surge in operating income in the third quarter of 2023. Additionally, the growth of Amazon’s e-commerce business, bouncing back from the economic downturn, signals a promising trajectory for the stock in the near future.
Next in line is Roku, a company that faced a setback with a 79% decline in its stock over the past three years, attributed to a sluggish ad market in 2022. However, Roku has been gaining traction by capturing viewers with its free ad-supported content featured on The Roku Channel, which experienced a remarkable 50% year-over-year surge in total streaming hours last quarter. This is a strong indicator of Roku’s potential for a turnaround in the near future.
Lastly, we have Alibaba, which has been demonstrating notable growth in its international commerce business, boasting a commendable 53% increase in revenue across all business segments in the quarter ending in September. Furthermore, the company’s operating profit saw a significant 34% year-over-year upsurge, emphasizing the underlying value that supports its current share price.
In summary, these turnaround stocks exhibit compelling reasons for investors to consider them for long-term growth. Amazon’s strong performance across its various segments, Roku’s innovative approach to capturing viewer attention, and Alibaba’s impressive international commerce growth all point towards a bright future for these stocks. So, if you’re seeking stocks with the potential for substantial upside over the next few years, these three are certainly worth keeping an eye on.
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