<div id="readability-page-1"><p>Are you looking for undervalued stocks that could make a big comeback in the next year? I think there are some great opportunities out there, even with all the economic uncertainty we’ve seen lately.</p>    <p>It’s no secret that many stocks have taken a beating over the past few quarters. Relentless interest rate hikes from the Federal Reserve and signs of weakening consumer spending have spooked investors, leading to major selloffs. However, in my view, Wall Street has taken things too far in some cases.</p>    <p>Several stocks have entered deeply undervalued territory and are poised for a significant rebound in 2024. Many companies still have rock-solid business models with impressive staying power. Their earnings may be depressed in the near term, but I expect many will bounce back strongly within the next few quarters as the Fed shifts to cutting rates. Let’s take a look at the three following undervalued comeback stocks.</p>    <h2>Hormel Foods (HRL)</h2>    <div id="2213861"><p><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/></p><p>Source: viewimage / Shutterstock</p></div><p><strong>Hormel Foods</strong> (NYSE:<strong>HRL</strong>) is a global-branded food company that produces a wide variety of meat and protein products. The company has been facing challenges lately, as its latest quarterly results showed a 3% decline in net sales and a decrease in operating income compared to the prior year. Hormel Foods has been one of the latest victims of the weak consumer and margin compression many companies in its industry are seeing right now. The company has reported declining profitability recently, and its stock has trailed along with those disappointing bottom-line figures. It has now gone down 20.3% in the past year.</p>    <p>I believe the stock is at a level where it could rebound sharply and has little downside risk. It thus should be looked at as an undervalued comeback stock. Despite the headwinds, Hormel Foods delivered better-than-expected earnings in the first half of fiscal 2024. The company is still solidly profitable, and it is a Dividend King that is still increasing its dividends. In fact, Hormel announced its 384th quarter of uninterrupted dividends. I believe once the economic cycle turns, the company will be in a good position to start working on its margins again and deliver more upside. The dividend yield is now above 3.5%.</p>    <div id="3165931"><p><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1200" height="628" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/><br/>Click to Enlarge</p><p>Source: Chart courtesy of GuruFocus.com</p></div><p>While some analysts have reduced their price targets on Hormel Foods, the average rating is still a “Hold” with a $32.90 price target, implying almost neutral upside/downside from current levels. As long-term investors, you have to look past near-term noise. I think Hormel Foods is a solid pick for a comeback. The company’s transformation and modernization initiative is also expected to deliver its strongest level of savings in Q4 2024.</p>    <h2>Dollar General (DG)</h2>    <div id="1405312"><p><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/></p><p>Source: Jonathan Weiss / Shutterstock.com</p></div><p>As one of the hardest-hit retailers, <strong>Dollar General</strong> (NYSE:<strong>DG</strong>) has seen its stock price plummet in the face of slowing consumer spending. However, the main culprit behind the company’s struggles isn’t just a cautious consumer: high interest rates that have driven up the cost of servicing Dollar General’s considerable debt load. In Q1 2024, the company reported $72.4 million in net interest expenses.</p>    <p>But there’s light at the end of the tunnel for this undervalued comeback stock. With interest rates expected to start coming down in September, Dollar General’s interest expenses will begin to ease. Analysts are also forecasting a rebound in the company’s margins, which should boost the stock price in the coming years. In fact, I wouldn’t be surprised to see the turnaround begin as early as Q4 2024.</p>    <div id="3165934"><p><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1200" height="628" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/><br/>Click to Enlarge</p><p>Source: Chart courtesy of GuruFocus.com</p></div><p>At current prices, Dollar General’s potential upside far outweighs the downside risk. Plus, with a dividend yield of 2%, you’re getting paid to wait for the recovery to take hold. If you’re looking for an stock with undervalued comeback potential, Dollar General is definitely worth considering when looking at undervalued stocks.</p>    <h2>Hasbro (HAS)</h2>    <div id="2306202"><p><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/></p><p>Source: Nico Bekasinski / Shutterstock.com</p></div><p><strong>Hasbro</strong> (NASDAQ:<strong>HAS</strong>) makes toys, board games and digital games. The company has been navigating a challenging period, with revenue declining 18% year-over-year in Q2 2024, largely due to the divestiture of its eOne film and TV business.</p>    <p>When I feature Hasbro, you may think of it as a dying company. I mean, who’s playing board games and fiddling around with Ouija boards these days? You’d think kids don’t have time for that in 2024, and you’d be right.</p>    <div id="3165937"><p><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1226" height="741" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/><br/>Click to Enlarge</p><p>Source: Chart courtesy of GuruFocus.com</p></div><p>Thankfully, Hasbro has a trump card to show to investors, and that’s its online games like Monopoly Go!</p>    <div id="3165940"><p><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1226" height="741" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/><br/>Click to Enlarge</p><p>Source: Chart courtesy of GuruFocus.com</p></div><p>The board game was fun enough offline and is even more addictive online, since people can very easily pair up with randoms or their friends. You can play even if you don’t have friends, like many Gen Zers!</p>    <p>Thus, I think there is a good chance that the company will outperform analyst estimates going forward. Hasbro’s shift to digital gaming and entertainment is driving growth, with earnings of $1.22 per share and revenue of $995 million exceeding expectations in Q2 2024. The company’s strategic partnerships and investments in digital gaming are paying off, with strong licensing revenue from hits like Monopoly Go! and Baldur’s Gate 3.</p>    <p>I think Hasbro can convert many more of its classic board games into addictive online experiences going forward. The stock is down 2.8% in the past year and now yields an attractive dividend yield of 4.4%.</p>    <p><em>On the date of publication, Omor Ibne Ehsan 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</em>.</p>    <p><em>On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.</em></p> <p>Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.</p><p>Consumer Staples, Food, Consumer Discretionary, Retail</p><p>Undervalued Stocks</p> </div>

<p>Undervalued stocks poised for a comeback in 2024 include Hormel Foods (HRL), Dollar General (DG), and Hasbro (HAS). Hormel Foods is expected to rebound with solid profitability and increasing dividends. Dollar General's interest expenses will ease as interest rates go down, leading to a potential rebound in margins. Hasbro is navigating a challenging period but has potential for growth. These undervalued stocks offer comeback potential.</p>

3 Undervalued Stocks Poised for a Comeback in 2024