Investing in stocks on sale can be a savvy move for long-term growth. Legendary investor and longtime Berkshire Hathaway chief Warren Buffett once famously penned in his 2008 annual letter to shareholders: "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."
By purchasing stocks at a discounted price, investors position themselves to benefit from potential future appreciation if and when the market sentiment eventually turns in their favor. However, it's essential to determine if a depressed stock is a value play or a value trap.
Let's look at three beaten-down stocks at various stages of the business cycle and determine if they are ready to bounce back.
Source Fool.com