By Matthew Frankel
KEY POINTS
- All 10 of these stocks have declined by 50% or more from their recent highs.
- However, these are all rock-solid businesses with excellent momentum and large market opportunities.
- Patient long-term investors may want to take a closer look at these stocks while they’re down.
These stocks are all down by 50% or more from their highs and could be great long-term investments.
There are literally hundreds, if not thousands, of stocks that have been beaten down in the recent market declines, but that doesn't mean they're all worth buying. But there are some compelling bargains for patient long-term investors willing to deal with a roller-coaster ride in the short term.
In no particular order, here are 3 of my highest-conviction stocks that have been beaten down by 50% or more from their highs:
1. Boston Omaha Corporation
Boston Omaha Corporation($Boston Omaha Corporation(BOC)$ )is an up-and-coming conglomerate with subsidiary businesses in billboard advertising, insurance, and fiber broadband services. It also has an asset management business and holds minority investments in some promising companies.
Management uses an ultra-long-term value-creation strategy. With shares down by 50% from their 52-week high, now could be a smart time to take a look at this business that isoften compared toan earlier-stage Berkshire Hathaway.
2. SoFi
A true banking disruptor,SoFi($SoFi Technologies Inc.(SOFI)$ )has grown impressively and continues to do so. The company recently received approval for a bank charter of its own, which gives it a major competitive advantage over much of its fintech competition.
Its highly successful lending business gives it a big customer base to cross-sell other services in its ecosystem. SoFi is 76% below its 52-week high, but the business is firing on all cylinders.
3. Howard Hughes Corporation
Despite having its best year ever in 2021,Howard Hughes Corporation($Howard Hughes(HHC)$ )trades for more than 50% below its pre-pandemic 2020 high. The short version is that Howard Hughes is a land developer that acquires large tracts of land and sells buildable lots to homebuilders.
With rising mortgage rates and soaring home prices, there's fear that land sales may grind to a halt in the near term. While this is certainly possible, Howard Hughes has a winning long-term value-creation model and is worth a closer look at these levels.
Patient long-term investors should take a closer look
To be perfectly clear, I have absolutely no idea what any of these stocks will do over the next few weeks or months. But for investors who measure their returns in decades, now looks like an incredibly attractive entry point in these great businesses. In fact, I own all 3 of these in my personal stock portfolio and have bought shares of all of them in the recent market downturn, with the intention of holding for the long haul.
Resource: the Motley Fool
Comments