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Investors know that stock turnarounds can sneak up when least expected. Despite the inherent risks, there’s always a glimmer of hope for previous year’s underperformers to make a remarkable comeback. As we ponder risky endeavors like betting on high-performing stocks continuing to dominate the market, it’s often the underdogs that surprise us the most. These overlooked companies, with low expectations, have the potential to rise like a phoenix from the ashes.

Philip Morris (PM)

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Philip Morris (NYSE:PM) might seem like a lost cause to most, especially given the declining global smoking rates and the contentious nature of the tobacco industry. Yet, there’s a glimmer of potential for a turnaround. As tobacco firms like Philip Morris shift their focus to heat-not-burn devices, and with varying smoking rates across different countries, the company could still surprise the market. Moreover, PM offers substantial margins and a consistent 5.76% dividend yield, placing it firmly in the running for a remarkable turnaround.

Gilead Sciences (GILD)

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Gilead Sciences (NASDAQ:GILD), a major player in the biopharmaceutical industry, has encountered substantial volatility in its stock value, with a 14% drop in the last year alone. However, with breakthrough treatments for various diseases like HIV/AIDS and Covid-19, GILD remains a strong contender for a significant turnaround. Analysts even anticipate a 22% potential upside for GILD. These factors position Gilead Sciences as a promising candidate for a remarkable stock recovery.

Agco (AGCO)

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AGCO (NYSE:AGCO), an agricultural machinery manufacturer, has faced a tough year with a significant decline in stock value. However, the severe volatility seems overblown when considering its vital role in the food value chain. AGCO’s recent record net sales showcase its potential for growth in a recovering economy. With these factors in mind, AGCO presents a compelling case for a remarkable stock turnaround in the near future.