2 Beaten-Down Stocks Worth Buying and Holding for the Next Decade
These companies haven't said their last words.
Overview
Some investors believe equity markets are currently overvalued. There are good reasons to think so. For instance, the S&P 500's Shiller price-to-earnings ratio -- a valuation metric -- has been higher in recent years than at any point since the late 90s, right before the dot-com bubble burst. Still, even now, it's possible to find attractive stocks to buy, and one potentially lucrative strategy is to look for beaten-down companies that appear to have what it takes to recover. Here are two options to consider: Netflix (NASDAQ: NFLX) and Intuitive Surgical (NASDAQ: ISRG).
Image source: The Motley Fool.
Netflix is having a terrible year. The company's financial results have been subpar, and engagement on its platform isn't particularly strong either. During the first half of the year, the company's viewing hours increased by just 2% year over year. However, Netflix still boasts one of the deepest ecosystems of paid subscribers in the streaming industry, and that could be the key to turning things around. Netflix needs to find ways to keep its viewers engaged amid the practically infinite entertainment options available.
Details
Source
Originally published at www.fool.com.