As the market moves into the second half of the year, there are some stocks, two in particular, that have the potential to make a serious comeback. While these two stocks have lost more than a third of their value in the first six months of the year, they have the catalysts to turn things around in the second half of the year.
1. FitBit (FIT)
FitBit stock is down 59% so far this year, but still holds the top spot in the fitness tracker industry. Sales are still growing, but investors are concerned about new competition and lower margins.
To its credit, FitBit has released new products to remain competitive. In fact, the company has sold over one million Blaze smartwatches and Alta fitness trackers in the first quarter of the year.
FitBit has warned that sales in the second quarter would not meet expectations. With that said, revenue is still strong, with a 50% increase in the first quarter and an estimated 44% in the second quarter.
FitBit has the potential to turn around if the company continues releasing new products. A few new products are already slated for release in the latter half of the year.
2. American Airlines (AAL)
Down 33% this year, American Airlines is facing tumbling load factors and lower fares in a cutthroat market that has been greatly affected by global economic instability. Fluctuations in foreign currencies and the recent Brexit vote only add to the complications.
The airline posted record results in 2015, and adjusted earnings were still higher in the first quarter of the year. American Airlines can see a turnaround in the second half of the year if they can manage to reduce the number of vacant seats on their planes and raise fares. Improvements in Latin America and Britain can help bring these changes to light.
