The great thing about the market's recent decline is that it has created opportunities for investors. Indeed, there are now plenty of stocks that look a lot cheaper than they did just six months or one year ago. Those looking for bargains in the market shouldn't have too much trouble hitting the mark.
But in case you need some inspiration, here are two stocks currently trading near their 52-week lows: Trulieve Cannabis (TCNNF 1.17%) and Meta Platforms (META 1.89%). Here is why shares of both of these companies are worth buying, especially at current levels.
1. Trulieve Cannabis
Last year, Jefferies analyst Owen Bennett referred to U.S. pot stocks as a generational wealth builder. The analyst said he thought retail cannabis sales in the U.S. would reach $64 billion by 2030 -- up from $17.2 billion in 2020 -- and one of the stocks he recommended to cash in on this trend is Trulieve Cannabis. This vertically integrated medical cannabis company is a leader in the state of Florida, but it also boasts a presence in 10 other states, with a combined 159 retail dispensaries across the nation as of early January.
Trulieve Cannabis has had a more careful and disciplined strategy than that of most of its competitors in the marijuana industry, many of whom splurged on acquisitions in the hopes of dominating the market, even at the expense of a strong balance sheet and profitability. Meanwhile, Trulieve Cannabis first solidly established itself in the Sunshine State -- becoming one of the leaders in the cannabis market in Florida -- before significantly increasing its footprints across the nation, thanks in part to a key acquisition.
Perhaps as a result of its strategy, the pot grower has achieved consistent profitability while also establishing a wider network across the U.S. than any of its competitors. In the third quarter, Trulieve Cannabis' revenue soared by 64% year over year to $224.1 million. The company's net income came in at $18.6 million, 7% higher than the year-ago period.
That was Trulieve Cannabis' 15th consecutive quarter of profitability, an impressive feat considering many of its peers have had trouble generating any profits at all. Trulieve Cannabis is well-positioned to remain a leader in the U.S. pot market for years to come. It currently trades just a few dollars above its $18.46 52-week low, making it an excellent entry point for investors.
2. Meta Platforms
Shares of Meta Platforms crashed after the tech giant, formerly known as Facebook, reported its first-quarter financial results. Investors ran for the hills as the company revealed the harmful effects of Apple's iOS changes on its ad revenue. There is no question this obstacle will continue to weigh on Meta Platforms' results, not to mention the increased competition from platforms such as TikTok. However, the company's future is tied to two massive opportunities.
First, Meta Platforms has been ramping up its efforts to bring e-commerce to its family of apps. The company's enormous ecosystem of 2.91 billion monthly active users is something merchants won't want to ignore. That's why Meta Platforms hopes to entice businesses onto Facebook and Instagram by allowing them to set up online storefronts on these popular platforms, a strategy that will likely yield tangible benefits in the long run.
Of course, Meta Platforms' metaverse ambitions have been a hot topic since last year. The metaverse is a parallel, immersed, virtual world people can enter thanks to virtual reality (VR) devices, in which they can interact with one another and their environments.
Wall Street analyst Eric Sheridan thinks the metaverse could be an $8 trillion opportunity. That's huge. And if it's even remotely accurate, those companies leading the charge into this massive market will be handsomely rewarded somewhere down the road -- along with their shareholders.
Meta Platforms is already a leader in VR thanks to its subsidiary Oculus, and it is investing billions of dollars into building the metaverse. In the first quarter, Meta Platforms' reality labs revenue (including its VR business, among other things) increased by 22.3% year over year to $877 million. However, it also incurred a $3 billion operating loss.
Meta Platforms' total revenue grew by 20% year over year to $33.7 billion, while its net income of $10.3 billion decreased by 8% compared to the year-ago period. Meta Platforms' metaverse ambitions won't yield profits anytime soon. Still, the losses it is incurring due to its increased focus on the metaverse could pay for themselves several times over if the company's master plan actualizes.
Meta Platforms' recent dip presents an excellent buying opportunity for those who have bought into its vision of the future.