3 Beaten-Down Stocks Poised for Rebound in 2024

investing.com:

Stocks on Wall Street are on track to close out 2023 on a solid note with investors growing increasingly optimistic that that the Federal Reserve may be done raising rates amid cooling inflation and as the economy holds up better than expected.

The tech-heavy Nasdaq Composite has led the year-to-date charge higher, rising 36.4%, while the benchmark S&P 500 and the blue-chip Dow Jones are up 18.6% and 6.8% respectively for the year.

With Fed policy, inflation, and soft-landing prospects likely to remain front and center for investors in 2024, I recommend buying shares of these three beaten-down companies thanks to their improving fundamentals and reasonable valuations.

As one of the nation’s most interest-rate-sensitive financial institutions, Charles Schwab (NYSE:SCHW) found itself caught up in concerns over the health of its balance sheet and the specter of rising interest rates. Shares of the online stock brokerage — which are hovering near their lowest level since November 2020 — have lost 33% year-to-date due to worries about the strength of the banking sector.

However, a closer examination suggests these fears might be exaggerated. Schwab's proactive measures to navigate through higher interest rates to maximize profitability, coupled with its impressive track record of customer acquisition, paint a promising picture for a potential rebound in 2024.

Although the financial services company faces headwinds due to the challenging operating environment, its successful integration of the TD Ameritrade merger significantly expanded its customer base. The Westlake, Texas-based discount broker had 34.6 million active brokerage accounts as of the end of October, 5.2 million corporate retirement plan participants, 1.8 million