Can These Two Battered Stocks Soar Once Again?

The Opportunity and Risk in Beaten-Down Stocks

Investing in stocks that have plummeted in value can feel like stumbling upon a clearance sale, offering the tantalizing prospect of buying low and selling high. Warren Buffett famously said, “Price is what you pay, value is what you get,” highlighting the potential to uncover gems when stocks are undervalued. 

These opportunities often arise when popular stocks experience setbacks, causing their share prices to drop due to temporary issues rather than permanent decline. However, not every cheap stock is a bargain. Some are priced low for good reason — flawed business models, poor management, or irreversible market shifts. 

To determine whether a beaten-down stock can reclaim its former glory, investors must dig into the company’s fundamentals, competitive position, and leadership changes. A new CEO with a bold vision can sometimes spark a turnaround, but success hinges on execution and market conditions. 

Intel (INTC): A New CEO Takes the Helm

Intel (NASDAQ:INTC), once the unchallenged king of semiconductors, has fallen from grace, its stock down 28% over the past year amid operational missteps and fierce competition. The company missed the smartphone chip boom and failed to capitalize on the artificial intelligence (AI) processor surge, ceding ground to Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). 

Under former CEO Pat Gelsinger, Intel invested heavily in its foundry business to compete with Taiwan Semiconductor Manufacturing (NYSE:TSM), but cooling demand for PCs and servers forced the company to scale back these ambitions. The company reported a staggering $19 billion loss in 2024, its first since 1986, reflecting the weight of these strategic errors.

Enter Lip-Bu Tan, Intel’s new CEO since March 2025, a semiconductor veteran with a track record at Cadence Design Systems (NASDAQ:CDNS). Tan is shaking things up, focusing on cost-cutting, reducing bureaucracy, and pivoting the foundry to a next-generation “14A” manufacturing process to attract major clients like Nvidia and Apple (NASDAQ:AAPL). This shift, while potentially costly, aims to make Intel’s foundry more competitive. 

Tan’s aggressive restructuring, including a 20% workforce reduction and a focus on high-margin projects, signals a leaner Intel. His direct engagement with customers and engineers suggests a pragmatic approach to regaining market trust. 

However, challenges remain. Intel faces entrenched competitors, and the foundry pivot could incur significant write-offs. Analysts are cautiously optimistic, with some seeing the stock’s $22 price as undervalued. Northland Securities set a market high $28 per share target last November, though that was before Gelsinger was ousted and Tan took over. 

While Intel’s recovery is plausible, reclaiming its former dominance this year is unlikely given the competitive landscape, meaning investors will require patience for the turnaround to materialize.

Harley-Davidson (HOG): Can a New CEO Revive the Icon?

Harley-Davidson (NYSE:HOG), the iconic American motorcycle brand, has been on a downward spiral, with its stock dropping 36% from its 52-week high, and it sits 54% below where it traded 10 years ago. 

The company’s troubles began when it overproduced motorcycles to meet demand, flooding the market and diluting the brand’s exclusive mystique. Under outgoing CEO Jochen Zeitz, Harley went all-in on electric motorcycles, creating and then spinning off LiveWire (NYSE:LVWR) as a standalone EV stock in 2022. 

Despite raising $295 million, LiveWire’s performance has been disastrous, with its stock plummeting from early highs to a low of $0.93 per share in May, before a brief spike to $7.48 per share. Recent resignations of LiveWire’s CFO and a key board member, coupled with insider stock sales, underscore the EV maker’s ongoing instability. 

Harley, which retains a majority stake in LiveWire, has suffered collateral damage as the EV venture failed to resonate with riders skeptical of electric big bikes. LiveWire sold just 33 motorcycles in the first quarter.

With Zeitz set to retire in 2025, Harley’s board is searching for a new CEO to steer the company back to profitability. The Hardwire turnaround plan, launched in 2021, aimed to refocus on premium motorcycles and expand into apparel. However, declining sales and cultural issues, such as backlash over work-from-home policies, have slowed progress.

Activist investor H Partners, holding about a 9% share of HOG stock, is pushing for change, urging shareholders to oust Zeitz and two long-serving directors. A new CEO could refocus Harley on its core gas-powered bikes, leveraging the brand’s heritage to recapture loyalists while cautiously exploring EVs. 

Yet, rebuilding the brand’s appeal and attracting younger riders will take time. Without a clear strategy to balance tradition and innovation, Harley risks further decline and an uncertain recovery.

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