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Stock Strategist

Five Companies Poised for Better Days

Are these fallen angels ready to soar again?

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I'm told that having a shiny 1968 Ford Mustang makes you pretty cool. But I think buying a slightly scuffed 1968 Ford Mustang at a junkyard for a song--and then restoring it to its formal glory--is 10 times cooler.

So it often is with investing. Many dream of finding that rare gem of a company, perhaps once great and admired but now exiled to the proverbial junkyard of the market, just waiting for the right buyer to come along to recognize its proper value. There is something especially satisfying about spotting a company that's fallen on hard times but is primed for a turnaround. Of course, the potential monetary rewards can be savory, but there is also a gratifying psychological kick to be had in besting Mr. Market and the hordes of investors who dumped the company in troubled times.

Michael Tian does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.