Patience can be difficult for investors, yet it's frequently one of the most profitable virtues. Investors who have been holding onto mid-cap stocks over the last few years know this all too well. The impacts of inflation, higher interest rates, and tariffs have put pressure on revenue and margins.
However, many of these stocks offer dividends that pay investors for holding on, even as some are trading near 52-week lows. With the help of the MarketBeat stock screener, three mid-cap stocks are trading near 52-week lows, but have analyst support that suggests they may be ready for a solid recovery.
Just Like Its Consumer, Reynolds Is Looking for Certainty
Consumer discretionary stocks have had a rough go of it since 2023. However, for a company like Reynolds Consumer Products Inc. (NASDAQ: REYN), tariff concerns are creating a headwind the company didn’t need.
Inflation that continues to be above the Federal Reserve’s preferred 2% target has increased the cost of the raw materials that Reynolds needs (i.e. aluminum and resin). Inflation has also impacted shipping and labor costs. In 2025, Reynolds can now elevated tariffs on aluminum to the mix.
Predictably, the company’s revenue and earnings have been under pressure as consumers have shifted to house brands and are looking to stretch every dollar. This comes despite Reynolds having been somewhat successful at passing some of those costs through to consumers.
However, that has come at the expense of volume and margins, which the company continues to believe will be down year over year (YOY) in 2025.
What then, makes REYN stock worth a look? First, the stock has drifted into oversold range according to its Relative Strength Indicator (RSI). Another reason to consider Reynolds is because analysts are maintaining a consensus price target of $28.33, which is an upside of more than 27%. Finally, trading at around 13x earnings, the stock is trading at a discount to itself.
Strong Brands Are Helping Campbell’s Navigate a Tough Environment
The Campbell’s Company (NASDAQ: CPB) presents investors with a nearly identical set of concerns as Reynolds. The company is fighting higher aluminum prices. However, the company has another headwind as consumers are looking for healthy alternatives, which is being enhanced by the popularity of GLP-1 drugs.
That headwind is showing up in the company’s Snacks division. In its most recent quarter, net sales in the category were down 6% YOY and operating earnings were down 29% YOY.
Still, the company has managed to maintain a disciplined capital structure largely due to the strength of its brands, which continue to hold up well despite competition from house brands. That discipline allowed Campbell’s to increase its dividend by 5% at the start of its 2025 fiscal year.
Like Reynolds, analysts continue to have a consensus price target significantly above the CPB stock price on May 29. However, analysts appear to be slightly more bullish on the stock, which is attractively valued and trading in an oversold range.
J&J Snack Foods Is Planning to Pull Off Mission Impossible
J&J Snack Foods Corp. (NASDAQ: JJSF) may be the riskiest choice of the three stocks on this list. In a recurring theme, inflation has increased the company’s input costs. However, the company is largely shielded from tariffs.
Another bullish point is that despite a P/E ratio of 26x, JJSF stock is trading at a discount to its historical averages and at nine-year lows. But does this mean the stock is so bad it’s good, or is it a falling knife?
The key may come from the company’s Theater business. The company’s products, like Slush Puppies and Super Pretzels, are movie theater staples. That business was notably weak in the most recent quarter. Management said that North American box office sales declined by approximately 10%, hurting margins.
But summer in the United States typically correlates with blockbuster movies such as the latest movie in the "Mission Impossible" franchise. The company is projecting growth in the category, which would make the stock look more attractive. The J&J analyst forecasts on MarketBeat have a Moderate Buy rating on the stock with a consensus price target of $142.50, which is a 25% increase from its price as of this writing.