2 Beaten-Down Stocks With Massive Upside Potential
These companies have a healthy amount of risk, but the potential long-term gains might be worth it.
Overview
With broader equity markets near all-time highs, looking for beaten-down stocks with attractive long-term upside potential seems like a great strategy. Here are two companies to consider: Rivian Automotive (NASDAQ:RIVN) and Robinhood Markets (NASDAQ:HOOD). Both are fairly innovative in their respective industries, and their shares have been volatile this year, declining meaningfully from their 52-week highs. However, if they can execute, Rivian and Robinhood could produce outstanding returns over the long run. Let me explain.
Image source: The Motley Fool.
Rivian, an electric vehicle (EV) maker, has had a volatile year. The stock is currently down 29% from its 52-week high, with recent developments, such as the company's decision to increase funding by issuing new shares (thereby diluting existing shareholders), weighing on the stock. However, there are also reasons to be optimistic about Rivian's future. For instance, the company launched the R2 earlier this year. The R2 is a mass-market model with a much more approachable starting price than Rivian's previous EVs.
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Originally published at www.fool.com.