Turnaround stocks are like hidden gems, poised for great things after weathering a period of adversity. Investors have to have a keen eye for potential when searching them out. Recently, it’s become apparent that the three companies on this list have been making a change in 2024 and are becoming turnaround stocks as they now offer new high-growth prospects.
The first company is a pioneer in electric vehicles (EVs) that is showing signals of a revival. With an astounding increase in car deliveries year-over-year (YOY), the business is quickly securing its place in the cutthroat EV industry.
The second company represents the entertainment industry and shows tenacity and flexibility in the age of streaming. Its emphasis on streaming services has resulted in notable gains in revenue from subscribers and increases in advertising. It has also created strategic alliances and initiatives to expand internationally, suggesting a bright future for the company.
The third company is a model example of innovation and reinvention in the technology industry. As a pioneer in artificial intelligence (AI) and cutting-edge technology, the company’s recent product releases demonstrate its dedication to remaining top of its class.
Smart investors should explore how they can profit from these possible turnaround stocks. Through their strategic objectives, operational efficiency and market growth efforts, these companies provide attractive chances at growth.
Nio (NIO)
Nio (NYSE:NIO) has seen a substantial increase in car deliveries lately, reflecting its market penetration and customer demand. In total, Nio supplied 50,045 premium smart electric cars during Q4 2023, an impressive 25% increase from Q4 2022. Nio’s cumulative delivery in 2023 was 160,038 units, a solid increase of more than 30.7% from the year before. These figures highlight Nio’s capacity to grow its business quickly and expand its foothold in the cutting-edge EV industry.
Additionally, in January and February of 2024, Nio delivered over 18,000 cars despite seasonal variations and the effects of the Chinese New Year. This highlights the company’s capability to adapt to shifting market conditions and operate profitably even under trying circumstances.
Forecasting for Q1 2024, Nio expects to supply between 31,000 and 33,000 units. This outlook for 2024 shows steady growth momentum and emphasizes management’s belief that the company will continue to see strong demand for its cars in the upcoming months.
Warner Bros. Discovery (WBD)
Lately, Warner Bros. Discovery’s (NASDAQ:WBD) has had an intense concentration on streaming services. This is evident in the company’s solid increases in subscriber-related revenues and advertising growth.
In an effort to create new streams of revenue from the service, the company intends to grow and introduce ad-supported options as well. Warner Bros. Discovery is focusing on gaining market share in the streaming industry. In 2023, the direct-to-consumer sector experienced a positive EBITDA of almost $100 million. This represents a pro forma increase of $2.2 billion over the previous year.
Warner Bros. Discovery also expanded its sports programming business by forming a joint venture with Disney (NYSE:DIS) and Fox (NASDAQ:FOX). Thanks to strategic collaborations, Warner Bros. Discovery can expand its subscriber base, experiment with new income streams and diversify its content offerings. As of 2023, Warner Bros. Discovery had saved $4 billion from mergers and transformations combined. Operational efficiency programs and post-merger integration activities have resulted in cost reductions and increased margins.
To sum up, Warner Bros. Discovery is increasing its competitiveness and flexibility in responding to market changes by optimizing resources, simplifying procedures and implementing data-driven management techniques.
Intel (INTC)
Part of Intel’s (NASDAQ:INTC) current development plan is to take a leading position in both AI and cutting-edge technologies. The company recently released its new Intel Core Ultra central processing unit (CPU) that enables improved performance in AI-powered apps and is considered one of the best in the industry right now.
Similarly, Gaudi 2 AI accelerators are proving to be performance leaders, and Gaudi 3 is anticipated to improve performance even more. The company also offers the OpenVINO product, a powerful deep learning toolkit developed by Intel that enables optimized neural network inference across multiple hardware platforms. Adoption of OpenVino increased 60% in Q4, indicating the growing use of this essential software layer for AI inferencing.
Technically speaking, Intel surpasses its competitors by achieving previously unheard-of milestones. Intel’s dominance in the market has been cemented by the introduction of Arrow Lake in Intel 20A and the anticipated manufacturing readiness of Intel 18A.
With solid momentum and client commitments, the company is moving in the right direction to become the second-largest external foundry by 2030. As a result, Intel is the only semiconductor manufacturer with sustainable production across all core regions, and capacity will always be available. Intel is also a pioneer in 3D advanced packaging production as demonstrated by the opening of Fab 9 in New Mexico. As far as turnaround stocks go, INTC is doing everything right.
As of this writing; Yiannis Zourmpanos held long positions in WBD and INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.