As investors and traders alike have settled into the “higher for longer” mindset for interest rates, U.S. equities have experienced a lot of selling pressure in recent weeks. The S&P 500 is down 2% in the last 3 months, while the Nasdaq has fallen 1.44%. However, bearish times can still present good moments to invest in attractive public companies. For those with enough patience looking for long-term potential in their investments, below are three stocks for ambitious investors that could fit the bill.
Advanced Micro Devices (AMD)
Advanced Micro Devices’ stock (NASDAQ:AMD) has definitely seen better months. The chip stock has fallen about 16% since its high in early June. The company that knocked microprocessor giant Intel (NASDAQ:INTC) off its feet has, in a way, lost its own footing while trying to get investors and market analysts to believe in its core AI products. However, certain tech executives have not stopped believing in AMD’s potential. Last week, Microsoft’s (NASDAQ:MSFT) Chief Technology Officer Kevin Scott said regarding AMD, “They’re making increasingly compelling GPU offerings that I think are going to become more and more important to the marketplace in the coming years.” The positive commentary gave the chipmaker’s shares a 5% boost.
The point is, do not count AMD out. Throughout the past decade, AMD’s CPUs have been able to steal significant market share from Intel, and those trends have not reversed. Sure, AMD’s MI300x GPU, which is meant to help power the AI revolution, is not yet in full-scale production, but the chipmaker has enough expertise and capital to pull it off. For the quarter, AMD’s shares are down 4.0% and potential investors should consider allocating to the stock before shares skyrocket.
Manhattan Associates (MANH)
Investors traumatized by the way post-Covid supply chain bottlenecks created enormous cost pressures for many companies, should be eager to invest in this entry. Manhattan Associates (NASDAQ:MANH) is a leading provider of software solutions for supply chain management, inventory optimization and omnichannel commerce. Three of Manhattan’s solutions include Omnichannel Commerce, Supply Chain Execution and Supply Chain Planning. Omnichannel Commerce helps companies better connect with their suppliers while also automating the purchase order process. Supply Chain Execution tools allow companies to manage their warehouses or shipyards to understand which products are where and which transportation vehicles are in use. The last solution offers a layer of data analytics on the first two solutions, providing companies with demand forecasting capabilities.
The company initially benefitted from the increased demand for its solutions amid the pandemic-induced supply chain turmoil in 2021 and 2022. In 2021, revenues grew 13.2% year-over-year (Y/Y). while in 2022, top-line growth came in around 15.6% Y/Y. Both of these figures are above Manhattan’s growth rates before the pandemic, which signals the pandemic could have been the catalyst the supply chain software services provider needed to revive sales growth.
Despite supply chain bottlenecks largely being behind us now, retailers and distributors have continued seeking to improve their efficiency, agility and customer satisfaction. Manhattan Associates’ shares have risen 72% since the start of 2023 and could rally even more as investors allocate capital to companies bringing digital transformation to supply chains globally.
Frontline (FRO)
Ambitious investors hesitant about putting their money into “Big Oil” may find satisfaction with Frontline (NYSE:FRO). This oil tanker company is one of the largest and most profitable in the industry. Frontline owns and operates a fleet of crude oil and product tankers that transport oil across the globe. As Saudi Arabia and Russia fulfill their production cuts, Frontline sees an opportunity. Crude demand from Asia, particularly from China as its economy continues to re-emerge, has continued unabated despite elevated prices. With supply cuts in the Middle East, China and other countries in Asia have increasingly begun sourcing their crude from Brazil, the United States and Guyana. The larger distance traveled from tankers will drive ton-miles, or the amount of oil shipped multiplied by the total distance traveled, in the long run. In other words, as ton-miles increase, so will shipping revenues.
Frontline has a strong balance sheet, a low breakeven cost and a generous dividend policy. The oil tanker’s dividend yield is around 16.3%, and shares have appreciated 70% since the start of the year.
On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.