2 Beaten-Down Stocks That Could Come Roaring Back

The stock market has rebounded over the past few months, but some struggling stocks have been left behind

In both cases, new CEOs are making big changes with the potential to get the companies back on track

While Unity and Intel are risky stocks, they could soar on any positive gress

Image source: Getty Images

Unity game engine developer Unity went through a major restructuring last year

A company reset led to significant layoffs and the exit from multiple non-core es

A new CEO stepped in last May with extensive experience in the mobile games

While gress has been slow, the early results are mising

Unity 6, the version of the company's game engine, brings important performance imvements and new features that are resonating with customers

In the advertising, the launch of the new artificial intelligence (AI)-powered Vector ad platform sets the stage for recovery

However, Unity Vector is starting to offset declines in other ducts

Unity is one of two major commercial game engines that dominate the market, along with Epic Games' Unreal Engine

This dominant position is Unity's most valuable asset, and the game engine is used heavily across the gaming industry

The challenge now is to turn that dominance into a growing, fitable

While the turnaround is just getting started, visible gress over the next few quarters could light a fire under the stock and der major gains to patient investors

Intel Semiconductor giant Intel is going through some major changes

Ing a turnaround effort led by former CEO Pat Gelsinger that ultimately led to his ouster, the company has brought on industry veteran Lip-Bu Tan to fix its blems

The first order of is a lining of operations that will involve substantial layoffs

Rumors suggest that even workers in the foundry, one of Intel's key growth initiatives, won't be immune

Intel is also planning to outsource marketing to a consulting company, which will use AI to slash marketing costs

Beyond cost cutting, Intel will ly pare down its duct portfolio and focus on its best opportunities

A new strategy for its AI chip could be coming ing the scrapping of its previously planned Falcon Shores GPU

The company has already sold off a majority stake in Altera, and more exits could be coming

In the foundry, Tan may be to take a dramatic step

According to Reuters, Tan is considering giving up on marketing the Intel 18A manufacturing cess to external customers, instead shifting focus to the upcoming Intel 14A cess

While Intel 18A represents a huge leap over Intel's previous manufacturing nology, it only closes the gap with TSMC, and the company has struggled to win over big customers

Long story short, Intel's comeback is going to be a drawn-out affair

However, the stock is priced so pessimistically today that any meaningful gress could send s soaring

Intel is currently valued right around book value, or assets minus liabilities, a historically low valuation for the storied semiconductor company

If Tan can tell a good story and convince investors that a turnaround is viable, a major recovery for the stock could be in the cards

Intel investors will need to be patient as the company attempts to fix its past mistakes and return to fitable growth

It's not a sure thing, but the risk-reward trade-off looks appealing

Timothy Green has positions in Intel

The Motley Fool has positions in and recommends Intel, Taiwan Semiconductor Manufacturing, and Unity Software

The Motley Fool has a disclosure policy.