If you are a contrarian investor looking for investment ideas, one of the best places to start your search is the list of companies hitting 52-week lows. These are stocks that are, clearly, unloved by investors and, perhaps, the declines are also overdone.

Right now, you’ll find that Intuitive Surgical (ISRG 1.63%), United Parcel Service (UPS 0.35%), and PepsiCo (PEP -1.41%) are all near their 52-week lows. Here’s a quick look at each one and why they could be right for your portfolio today.

1. Intuitive Surgical is building a foundation

In the second quarter of 2025, Intuitive Surgical placed 395 of its da Vinci surgical robot systems, which was up from 341 in the same quarter of 2024. The number of procedures performed with a da Vinci system rose 17% year over year. Basically, the healthcare company is continuing to grow its installed base of surgical systems. This is hugely important, even though investors are worried about short-term changes in the business environment.

The reason why Intuitive Surgical’s 25% decline from its 52-week high is so interesting is that selling new da Vinci systems isn’t the company’s most important business. In fact, selling surgical robots only accounted for around 25% of the top line of the income statement in the quarter. The rest of the company’s sales come from parts and services, which are recurring income streams. In other words, every new da Vinci sold helps to build the opportunity for future growth in parts and services.

Intuitive Surgical looks expensive on an absolute level, so only growth investors will likely be interested. However, its price-to-sales, price-to-earnings, and price-to-book value ratios are all below their five-year averages. So, the sell-off could be a growth at a reasonable price (GARP) opportunity for more aggressive investors.

2. United Parcel Services is a turnaround story

The first thing that most investors will probably be drawn to with United Parcel Service, or UPS as it is more commonly known, is its nearly 7.7% dividend yield. Be cautious; this is more of a turnaround story than an income story. Basically, the company is working to reset its business, and that risks the possibility of a dividend reset as well. This is why the stock is off its 52-week high by over 35%.

The list of changes that have taken place at UPS is material. There was a new, and more costly, union contract. Management has been making capital investments in technology to increase profitability. The investments being made have resulted in facilities being shut down and sold. And the company is trying to fine-tune its customer base, so it is focused on its most profitable end markets.

That last step has included the pre-emptive decision to drastically reduce UPS’s relationship with Amazon, its largest customer, but one that is also low-margin.

Basically, there are a lot of up-front costs in UPS’s turnaround plan. And that has investors worried about the future. But the necessary nature of package delivery and the fact that it would be hard, if not impossible, to replicate UPS’s infrastructure, suggest a turnaround is likely. Just go in knowing that the lofty dividend yield could be riskier than it seems.

3. PepsiCo is a Dividend King with a high yield

If you are an income investor, you’ll probably find PepsiCo more to your liking. The yield is lower at 4%, but the likelihood of the dividend surviving the current headwinds this consumer staples giant faces is fairly strong. After all, a company doesn’t become a Dividend King without dealing with bad times now and again. Right now is a bad time.

There are a couple of issues. First, consumer staples stocks in general have been having a rough go of it thanks to a push for healthier fare from consumers. PepsiCo’s strongholds of soda, salty snacks, and packaged food aren’t exactly in the sweet spot right now. Second, PepsiCo’s business is underperforming key peers, so Wall Street is extra negative. That’s fair, but given the company’s strong long-term history as a business, it’s probably short-sighted.

Consumer staples giants like PepsiCo have a strong history of adjusting to consumer trends. Sometimes it takes longer than other times, but that can open up an opportunity for income investors who think in decades and not days. Now is probably a good time to consider adding PepsiCo to your dividend portfolio if you don’t already own it.

Three different options for three different investors

You’ll find all kinds of stocks on the 52-week low list, which is the really exciting part for contrarian investors. Sometimes you’ll see a GARP opportunity like Intuitive Surgical pop up. Other times, the list will include solid turnaround stories like UPS. And the list of down-and-out stocks may even include some reliable dividend stocks like PepsiCo from time to time.

If you keep looking, regardless of your investment approach, you’ll eventually find something attractive to own.

The first half of the year was a difficult one for many artificial intelligence (AI) stocks as investors fled high-growth players. The reason? They worried that President Donald Trump’s import tariff plan might lift prices for a wide range of goods — and this could hurt the consumer’s buying power, weigh on corporate expenses, and eventually stop growth companies in their tracks.

As a result, the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite slid in April, but in recent weeks, investor sentiment has improved. Initial trade deals with the U.K. and China helped, as did commentary from tech giants, who reiterated capital spending plans, suggesting that potential tariffs wouldn’t stop their momentum.

Though the tariff situation remains uncertain, the market’s more sanguine view, as well as certain companies’ solid long-term outlooks, make now a fantastic time to get in on AI stocks. And two in particular may be well positioned to soar in the second half.

1. Amazon

The best word to describe Amazon‘s (AMZN 1.26%) stock performance in the first half is “lackluster.” The company actually finished the half at the same level it started, posting a 0% move for the period. Investors may have been concerned about Amazon getting hit by tariffs in two ways: Higher prices may weigh on e-commerce demand and revenue, and Amazon Web Services (AWS) might see customers rein in spending.

But there’s reason to believe those problems won’t occur. Amazon has a wide selection of products and sourcing countries, making it easy for the company to be nimble in an import tariff environment. As for AWS, so far, the strong spending message from companies suggests customers are sticking by their AI strategies and aren’t slowing down.

I also like the idea that Amazon has proven its ability to handle difficult environments. A few years ago, when inflation was soaring, the company revamped its cost structure. That move had immediate results, helping Amazon recover from its first annual loss in about a decade. This new cost structure should also make it easier for the company to overcome future pressures on costs, such as import tariffs.

AMZN Net Income (Annual) data by YCharts.

Finally, AI infrastructure buildout continues, and AWS, as the world’s biggest cloud company, should benefit as its customers seek compute and other AI solutions. This should keep Amazon’s billion-dollar earnings growing. And that, as well as a valuation of 35 times forward earnings estimates, down from more than 40 times late last year, could prompt investors to pile into this stock in the second half.

2. Alphabet

Alphabet (GOOG 1.47%) (GOOGL 1.46%) stock slipped more than 6% in the first half of the year amid the general uncertainties I mentioned above. It’s on the rebound from its lowest point in April, having gained more than 20% since, and I think the stock will move considerably higher in the months to come amid the improving sentiment for growth players.

Like Amazon, Alphabet is a market leader that has proven itself over time, generating significant growth and billions of dollars in earnings. This is thanks to the company’s Google platform and its cloud computing business, Google Cloud. The Google platform brings in revenue through advertising, as advertisers flock to the world’s internet search leader to reach us where they know we’ll be, and Google Cloud’s wide range of services is also a billion-dollar revenue driver.

And AI is at the center of the story right now. The company has developed its own large language model (LLM), and this is fueling better search experiences for users and more targeted ad campaigns for advertisers. Both of these elements should keep advertisers spending, and even increasing spending, on Google.

As for Google Cloud, AI products and services have been driving growth, and the unit reported a 28% increase in revenue to more than $12 billion in the latest quarter. This momentum should continue as cloud customers develop and scale up their AI programs, as we’re still in the early days of the AI story.

What may particularly attract investors to Alphabet right now is its dirt-cheap valuation, trading for only 18 times forward earnings estimates. And that could help this top AI stock to roar higher in the second half of 2025.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool has a disclosure policy.

It’s been frustrating to be a Nike (NKE 15.28%) investor the past few years, but investors cheered after new CEO Elliott Hill indicated that the worst was now behind the company after it reported its fiscal fourth quarter results.

Nike shares surged on the results, which topped low expectations, although the stock is still down on the year and more than 20% lower over the past five years.

Let’s delve into Nike’s recent earnings to see why now is a good time to pick up shares in the iconic sneaker and apparel maker.

The worst is over

Hill, who has been on the job for less than a year, has been working hard to help turn around Nike’s business following the missteps of former CEO John Donahoe. Hill’s predecessor neglected innovation and pushed the company’s classic footwear segment, which consists of brands like Air Jordan and Air Force 1. He also made a big direct-to-consumer push while neglecting important wholesale relationships.

Hill has been working to rewind the damage done by Donahoe through his Win Now action plan. The main tenet of his plan is to return Nike to its innovation roots. He has reorganized the business to drive sports-specific innovation across its three main brands: Nike, Jordan, and Converse. The company has seen some early traction with new innovation, with its Vomero 18 running shoe becoming a $100 million-plus franchise with strong sell-through just 90 days after launch.

The company is also working to mend its relationship with wholesalers. On this end, it recently announced a new partnership with Amazon, where the e-commerce giant will carry a select assortment of Nike footwear, apparel, and accessories. Nike also hired retail marketing, visual merchandising, and account managers to work with large wholesalers to help with their presentations and create better consumer connections.

In addition, the company is looking to implement sharper marketplace segmentation in order to serve its customers at different price points. At the same time, it is looking to position Nike Digital and Nike Direct as premium destinations. This means you might be able to get some lower-priced Nike products at a retailer like Kohl’s, while Nike will have its high-end products with the newest technology on its apps and in its stores.

While Nike’s actual results were still weak, Hill said it’s time to turn the page and that he expects Nike’s results to improve moving forward.

For fiscal Q4, Nike’s revenue declined 12% to $11.1 billion, with Nike brand revenue down 11% to $10.8 billion. Nike Direct revenue sank 14% to $4.7 billion, as digital sales collapsed 26%. This is largely due to the company repositioning its digital app as a premier destination. Wholesale revenue, meanwhile, dropped 9% to $6.4 billion.

China remained a weak spot, with revenue sinking 21% in the quarter to $1.5 billion. Nike has been heavily discounting in China to reset its inventory.

North America revenue dipped 11% to $4.7 billion, with apparel sales down 7% and footwear revenue falling 13%. EMEA (Europe, Middle East, and Africa) sales sank 9%, while Asia Pacific and Latin America sales decreased by 8%.

Heavy discounting to clear inventory continued to weigh on Nike’s gross margins, which fell 440 basis points to 40.3%. Between declining sales and gross margins, its earnings per share (EPS) plunged 86% in the quarter to $0.14.

The company said that tariffs would be a significant new cost headwind, representing an estimated $1 billion in gross costs. It said the tariffs would hurt its gross margin by 75 basis points this fiscal year, with the bigger impact in the first half. It is currently working with suppliers and retail partners to mitigate the costs and impact on consumers.

Is Nike stock a buy?

While Nike’s progress has not yet shown up in its results, Hill is helping lay the groundwork for the company to get back on track. He’s been leaning into innovation, rebuilding wholesale partnerships, repositioning Nike’s app and stores as premium destinations, and working to segment the brand into both premium and core offerings depending on the channel.

While the stock trades at a pretty hefty valuation, with a forward price-to-earnings (P/E) ratio of around 39 times analysts’ 2026 estimates, that’s largely because Nike’s earnings have been depressed. If Hill can get Nike’s EPS back to the $3.73 it was in fiscal year 2024, the stock would trade at under 20 times earnings.

Nike still has work to do, but now could be a good opportunity to buy the stock when the company is showing signs of a turnaround and the stock is still down on the year.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nike. The Motley Fool has a disclosure policy.

Stocks experienced significant volatility this year, which can sometimes make it challenging to keep a positive outlook. In times like these, it’s worthwhile to remember that stock-market swings, even full-blown crashes, are par for the course; they don’t change the fact that over the long run, equities generate competitive returns.

So it still makes sense to buy shares of companies that can deliver strong performances over five years or more. It’s even better if they’re trading at a discount, like Target (TGT -3.95%) and Bristol Myers Squibb (BMY -1.95%). These two top dividend stocks have not performed well this year, but they remain attractive long-term investments.

1. Target

Retail giant Target has had a challenging year. The company’s financial results have been subpar, with revenue moving in the wrong direction and guidance weak; investors have responded in kind by selling off the stock. Also not helping matters are uncertainty about the economy, which could negatively impact consumer behavior, and the potential impact of tariffs. There was also a recent national short-term boycott of Target related to management pulling back on its diversity, equity, and inclusion (DEI) initiatives.

Investors should monitor those issues, but there are still bright spots to focus on. Some of Target’s troubles are due to economic factors beyond its control. The company can weather the storm. Once it passes, things should improve, especially as it continues to implement critical initiatives that will help it turn the corner.

Target recently launched an Enterprise Acceleration Office, led by chief operating officer Michael Fiddelke. It hopes this will help boost productivity and efficiency across the business, notably by implementing tech-based changes.

Elsewhere, Target could continue to leverage digital business to drive growth. In the first quarter, Target’s net sales decreased to $23.8 billion, a 2.9% decline compared to the year-ago period. Comparable sales decreased 3.8%; however, digital comparable sales rose 4.7%.

Target Circle 360 is a paid subscription option launched just last year that is already helping boost the company’s digital business. It grants subscribers various perks, including free same-day and two-day shipping. And Target’s digital business includes Roundel, a personalized advertising unit.

With these initiatives, Target is adapting to the modern commerce landscape. In my view, there’s significant room for growth for the company in digital sales and ad revenue, given that Target remains a leading retail giant, even if it takes some time for the company to recover.

Meanwhile, Target’s recent forward price-to-earnings (P/E) ratio of 13.7 looks more than reasonable compared to the average for consumer staples stocks, which is 22.6.

The company also has a superior dividend profile. Target is a Dividend King that has raised its payouts for 53 consecutive years. Its forward yield of 4.6% (the average for the S&P 500 is 1.3%) and cash payout ratio of 45.7% also look attractive. The stock might still experience some struggles in the near term due to economic (and other) issues, but Target should reward patient investors down the line.

2. Bristol Myers Squibb

Bristol Myers Squibb, a leading pharmaceutical company, has encountered significant patent cliffs over the past few years, and it isn’t out of the woods just yet. There are still several cliffs on the horizon for the drugmaker, including one for Opdivo, a cancer drug that’s one of its top-selling therapies and should lose U.S. patent exclusivity in 2028.

However, BMS (as it is also known) has devised a plan to get around this issue. It developed a subcutaneous version of Opdivo that will extend the drug’s patent life while overlapping with the original’s indications. This version, dubbed Opdivo Qvantig, earned approval from the U.S. Food and Drug Administration in December.

Meanwhile, the company has earned important brand-new approvals in recent years. One of the most important is Reblozyl, a therapy for anemia in patients with beta-thalassemia (a rare blood disease). In the first quarter, Reblozyl’s sales increased by 35% year over year to $478 million. Opdualag, another newer cancer medicine, generated $252 million in sales, a 23% increase compared to the same period last year.

Revenue declined by 6% year over year in the first quarter to $11.2 billion. But as newer products gain traction and the company earns approval for other new drugs, it should be able to reverse course.

Turning to BMS’ dividend record, the company’s relatively poor performance in recent years has pushed its forward yield to a juicy 5.2%. BMS has increased its payouts by 67.6% over the past decade, and currently boasts a modest cash payout ratio of around 35%.

Also, the stock’s forward P/E of 7 makes it dirt cheap at current levels; the healthcare sector‘s average tops 16. Despite the headwinds it’s encountered, Bristol Myers Squibb is still a buy for dividend seekers.