Three of the Biggest Losers Could be Among the Biggest Winners in 2024

Some of the year’s biggest losers could be among next year’s biggest winners.

Look at illumina (ILMN), for example.

Down about 30% on the year, Illumina dealt with quite a bit of chaos. However, after missing earnings, cutting guidance, being fined by the European Union, removing its CEO, CFO, and CTO, and finally divesting its Grail investment, it’s all been priced in, we believe.

In addition, Illumina can again get back to unlocking value with its competitive advantage. For one, its scalable sequencing platform and integrated system makes it tough for customers to switch to competitors. Two, “The sale of Grail could unlock shareholder value, improve operating margins, and provide fresh liquidity for Illumina to invest in R&D and strengthen its core business,” as noted by Seeking Alpha.

Even better, analysts like what they’re seeing, too. Scotiabank analyst Sung Ji Nam, for example, just upgraded Illumina to Outperform from Sector Perform with an $185 price target. Bernstein also upgraded ILMN to Market Perform from Underperform. Stephens also initiated coverage of Illumina with an Overweight rating and $170 price target.

Albemarle (ALB)

With lithium supply issues, Albemarle (ALB) was torn apart in 2023. In fact, since July, it slipped from about $240 to $110. However, with lithium prices starting to recover, so is ALB.  

We also have to consider that, over the long-term, lithium supply won’t be able to keep up with demand. For example, Albemarle “expects global lithium demand to exceed supply by 500,000 metric tons in 2030. Various consultancies and other producers have slightly different projections, but all warn of a looming shortage,” as noted by Reuters.

Enphase Energy (ENPH)

There’s also Enphase Energy (ENPH), which fell from about $320 in late 2022 to a low of about $76 by late 2023. All after poor earnings, and stalled solar installations in the U.S. The good news is that ENPH is starting to recover lost ground, especially with solar expected to regain lost ground in the new year with expectations for lower interest rates.And, according to Bloomberg, “Electricity generated from U.S. solar and wind systems will surpass power produced by burning coal for the first time next year, driven by surging panel installations. Developers are expected to install 23 gigawatts of solar capacity this year and an additional 37 gigawatts next year, making it the fastest-growing source of new generation.”

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