3 Forgotten Stocks Worth Taking a Chance On

When it comes to investing, we all want to know what the next big thing will be. The problem is that by the time everyone realizes a stock is the next big thing, you have already missed out on the majority of the run. So in order to capitalize, you have to find the forgotten stocks before anyone else.

Just look at the following stocks as examples.

Back in the late 1990’s, no one was interested in Apple. It was trading at $2 a share and no one would have imagined that it would be trading at close to $150 today.

The story is the same for Amazon. After the dot com bubble burst, shares were going for $10 apiece and there were daily stories about how the company was on the verge of insolvency. But here we are 15 years later and the stock is closing in on $1,000 a share.

Of course, to make huge gains like this you have to get lucky picking the right forgotten stocks. You will strike out more than you succeed, but if you do your homework, you can increase your odds.

Below are 3 forgotten stocks that I feel are primed for a major comeback.

3 Forgotten Stocks Ready For A Comeback

#1. General Electric (NYSE: GE)

I know that no one is calling for the end of the giant conglomerate, but while the S&P 500 Index has returned close to 200% since the housing collapse, GE has fallen 36%.

Current CEO Jeff Immelt is retiring and incoming CEO John Flannery plans to take a detailed look at the company as a whole.

His goal is to increase cash flows, organic growth and limit rising costs. It’s a tough task, but a new leader is exactly what General Electric needs right now.

The stock is a buy as it trades at just 17 times earnings and is paying a healthy 2.9% dividend. As the company assesses where it is and what it should focus on in the coming years, Wall Street and investors will like the outcome.

#2. Under Armour (NYSE: UA)

In late 2016 and early 2017, Under Armour reported slowing revenue growth and lowered their forecasts for the future. The stock as a result got slammed.

While the news of slowing growth is scary when investing in a high growth stock like Under Armour, the company has a lot to like in the coming years.

First, international sales only make up roughly 16% of the company’s earnings, but the growth in international sales is on fire, rising 63% last year.

Then there is the licensing deal with Major League Baseball that starts in 2020. With this deal, Under Armour can expect a nice bump to its bottom line.

In the meantime, the company has expanded into Kohl’s and is working on streamlining their online and direct to consumer sales channels.

While the stock won’t recover overnight, the future looks bright for the stock and this might be the right time to buy in.

#3. Synchrony Financial (NYSE: SYF)

You probably never heard of Synchrony Financial. But if you have a store branded credit card, you most likely do business with them. They are the largest private label credit card servicer out there.

In fact, these companies all use Synchrony’s services:

  • Babies R Us
  • Sleep Number
  • Amazon
  • Lowes

The stock took a beating recently when it missed on earnings but that selloff was overdone. The stock currently is trading at just 11 times earnings, making it a great value play.

And unless we hit another credit crunch, the business of Synchrony should remain stable.

Add in rising interest rates, and future earnings releases should be good news for this stock and investors.

In fact, some investors have already figured this out as the stock is off its lows. Now is a great time to get in and earn a return along the way.

Final Thoughts

Taking a chance on forgotten stocks is risky. But with risk comes reward if you choose correctly. These 3 stocks are poised to turn things around and investors will make out handsomely.

You won’t see the stock prices pop overnight, but a steady rise as good news begins to trickle out will happen. Then others will take notice and join in for the ride. If you can get in at the right time, you can achieve excellent gains.

This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.

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