At the end of October, the stock market had been up five straight months, leading many to declare it overvalued. Sure enough, the market experienced a sell-off in November that appears to be due to profit-taking and sentiment rather than anything else. After all, third-quarter corporate earnings have come in strong.
That pullback has created opportunities in both the high-flying technology sector and other non-tech industries that have lagged behind artificial intelligence (AI) darlings this year. Value investors should take note of these three names and pounce on this pullback.
NASDAQ: INTC
Key Data Points
1. Intel
Indeed, Intel (INTC +0.00%) is up roughly 90% on the year; however, the stock began 2025 trading below book value, and its current price is still well below its all-time highs.
Investors are probably familiar with the fall of Intel. About seven years ago, Intel fell behind on process technology, then missed the AI boom by failing to capitalize on developing its graphics processing units (GPUs) for AI training. Meanwhile, recent attempts at expanding its foundry services to outside chipmakers have been underwhelming.
But new CEO Lip-Bu Tan, who took over in March, has an enviable track record of success, having successfully engineered a turnaround as CEO of Cadence Design Systems. Moreover, Tan has excellent knowledge of the current artificial intelligence ecosystem through investments by his venture capital firm, Walden International.
Intel also has tremendous strategic value as the only leading-edge U.S.-based chipmaker. This summer, the company attracted outside investments from industry giants Nvidia, Softbank, and the U.S. government. Nvidia and Intel also agreed to a partnership that should be mutually beneficial for both companies.
Intel is also just now ramping its 18A node, which has been in development for four years and was the point at which Intel was supposed to catch up with Taiwan Semiconductor Manufacturing (TSMC) in terms of process technology. If 18A succeeds, there could be significantly more upside to the stock.
Right now, Intel is barely making profits, but its foundry has lost $10 billion over the past four quarters. However, management has also maintained that the foundry part of the business should break even by the end of 2027 as Intel brings its processor tiles back from TSMC into its new leading-edge internal foundry.
So, if one merely takes today's roughly $10 billion in product earnings outside of foundry services against Intel's $180 billion market capitalization, Intel would be trading at only around 18 times its 2027 operating earnings. But Intel should also be able to grow earnings beyond that as its 18A chips become increasingly competitive, leading to market share gains and margin expansion. That makes the stock a high-upside bet, even after its 2025 gains.
2. SharkNinja
Household appliance innovator SharkNinja (SN +4.11%) has also seen its shares sell off in recent months, following a notable recovery after April's "liberation day" tariff scare. Tariffs have been an ongoing overhang for the stock, given that SharkNinja manufactures its goods in China, Vietnam, Indonesia, Thailand, Malaysia, and Cambodia.
While SharkNinja has actually managed to grow gross margins thus far this year due to price increases and cost efficiencies, the delayed impact of tariffs will begin to affect financial results in the fourth quarter.
Image source: Getty Images.
Still, management has done a great job of keeping operating costs in check while also growing the business via product innovation and geographic expansion. Revenue grew 14.3% last quarter, even as many other household products companies are struggling.
All of SharkNinja's four major categories grew, with solid growth across its core cleaning appliances, cookware, and food-preparation segments. Moreover, the company's newer venture into beauty and skin care appears to be an early success, with that category growing more than 50% year over year, reaching a not-insignificant 11.6% of sales.
Management also upped its guidance for the year for both revenue and adjusted (non-GAAP) earnings per share. And while tariffs will begin to bite in the fourth quarter, Wall Street analysts still predict approximately 15.5% earnings growth in 2026.
SharkNinja management has been able to grow well above its industry and expand margins prior to the tariff issues. While the tariffs will present a near-term challenge, this challenge doesn't appear insurmountable. Due to this one-time speed bump, SharkNinja appears cheap for its current growth rate, at just 23 times trailing earnings.
3. Hudson Technologies
Hudson Technologies (HDSN +2.42%) is a small-cap distributor of virgin and reclaimed refrigerants. The stock looks incredibly cheap at the moment, trading around 13 times earnings. But the stock is even cheaper than that, as the company is flush with nearly $90 million in cash, amounting to roughly 30% of its market cap.
Hudson's stock sold off after its recent earnings release, when the company abruptly announced that its CEO, Brian Coleman, would be stepping down. This is despite Hudson's third-quarter results actually beating expectations.
The uncertainty seemed to spook investors. In addition, on the subsequent conference call with analysts, board of directors member Eric Prouty noted the company was looking to expand into other complementary lines of business besides Hudson's current refrigerant business. Of note, the price of refrigerants can be highly volatile, with Hudson earning as much as $2.20 per share in 2022 but also losing ($1.31) per share as recently as 2018. Notably, Hudson's share price is currently just $6.85.
The new strategy appeared to imply that the company would look to use its cash to acquire new businesses instead of returning it to shareholders via share repurchases or dividends. The new strategy may pay off, but it appears somewhat risky.
About a week later, Hudson appointed Kenneth Gaglione as the company's new CEO. Gaglione actually worked for Hudson between 2020 and 2023, and before that, he was an executive at the large and diversified industrial giant Honeywell. After leaving Hudson, Gaglione worked as a consultant to a European private equity firm, where he evaluated opportunities in the HVAC sector.
The combination of extensive company experience, private equity experience in mergers and acquisitions, and familiarity with Hudson's business could make this appointment a success. Given how cheap the stock currently is, Hudson's shares are worth the risk today.
