It's been a tough start to 2025 for investors amid concerns regarding the strength of the U.S. economy and uncertainties over the effect of sweeping changes in trade policy under the Trump administration. At the time of writing, the S&P 500 index is down about 8% year to date.
Yet, periods of stock market volatility can present opportunities to pick up shares of beaten-down industry leaders at a bargain price. Companies that navigate temporary challenges can reward shareholders in the long run. Let's explore three magnificent stocks near their 52-week low that could be poised to rebound.
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Zoetis (ZTS 1.28%) is a global leader in animal health, with an extensive portfolio of medicines, vaccines, and diagnostic products for livestock and pets. The company's diversification, covering 17 products generating over $100 million in annual revenue, including several best-in-class treatments, underscores its appeal as an investment.
Last year, Zoetis sold its medicated animal feed additives unit as part of a broader effort to refocus on its core strengths. Although this transaction will temporarily affect top-line revenue growth, likely contributing to recent stock price weakness, the company's underlying financial trends and fundamentals remain solid.
For 2025, Zoetis expects organic revenue growth (excluding the divestiture) of 6% to 8%, with a similar increase in adjusted earnings per share (EPS) to a target range of $6.00 to $6.10. Looking ahead, an ongoing expansion in emerging markets and a pipeline of new products pending regulatory approval should sustain growth.
In my view, with the stock currently trading near its lowest level in a year, it represents a compelling buy-the-dip opportunity. Investors confident in Zoetis' ability to consolidate market share in this important healthcare segment have strong reasons to buy and hold the stock for the long term.
Nearly two years since the World Health Organization officially declared the COVID-19 pandemic emergency over, Pfizer (PFE 0.43%) is still navigating an overhang of record sales and earnings in 2022. The pharmaceutical giant faces market skepticism about its ability to identify new growth drivers beyond COVID-19 products, contributing to a 29% stock price decline over the past year at the time of writing.
Nevertheless, there are reasons for optimism. Pfizer's 2024 financial trends ended on a strong note, with the company delivering 11% year-over-year revenue growth in the fourth quarter (excluding COVID-19 products).
This growth was driven by strong performances across diverse categories in its portfolio. The oncology segment was particularly notable, with worldwide revenue up 27% from last year, fueled by recent launches and expanded indications for therapies like Padcev, Adcetris, and Xtandi. Although Pfizer's guidance for 2025 growth is muted amid continued volatility in the sales mix, the company's long-term outlook remains positive, backed by its consistent profitability and diverse drug candidate pipeline.
This year, multiple regulatory decisions and data readouts could provide the catalyst needed for the stock to rally. Whether Pfizer's growth turnaround occurs now or later, shareholders are getting paid a hefty 7.6% dividend yield to wait. With company management reaffirming its commitment to maintaining and growing the payout, Pfizer's stock presents an excellent high-yield income opportunity.
Nike (NKE 4.11%) also looks interesting following a steep 28% share price decline year to date. The footwear and apparel powerhouse has struggled to manage declining sales in a shifting consumer spending environment.
The latest headwind is its dependency on overseas manufacturing, which is strained by the Trump administration's sweeping trade tariffs. This is expected to lead to supply chain disruptions and ultimately higher costs for Nike, resulting in earnings pressure going forward.
Despite this challenge, there's still a case to be made that the sell-off has gone too far, more than pricing in some worst-case scenarios that could be exaggerated. First, Nike generates nearly 60% of total revenue outside the United States, highlighting its global diversification.
Second, the company benefits from a robust balance sheet with $10.4 billion in cash, giving it the strategic flexibility to make necessary adjustments. Finally, Nike's iconic brand and history of innovation provide a foundation for the company to emerge stronger.
The possibility that company results will outperform a low baseline of expectations this year could be key for Nike stock to rebound.
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