2 stocks are traded at the lowest price; the analyst says “buy”
At present, we are in a turbulent period. Since the beginning of the year, the stock market has declined under strong performance. Large tech companies (Big Tech) that thrived during the widespread lockdown of the epidemic and the shift to remote work led the decline. Investors have taken the measures of the vaccination plan, and now, because people believe and hope that the economy will return to a more normal basis as soon as possible, they are looking for stocks that can restore us to the “pre-corona”
; state. market outlook. There is also inflation to consider. Oil prices have risen this year. This is a commodity whose price fluctuations will definitely delay the supply chain. As consumer demand increases, people expect prices to rise at least in the short term. All in all, this is the time to accept the old market’s advice: buy low and sell high. Due to the current decline in stock prices and rising volatility, lows have been covered. The key is to find stocks that are ready to rise when the bulls start to run again. The analyst team on Wall Street knows this, and they did not shy away from recommending stocks that might fall to the bottom. Using the TipRanks database, we identified two such stocks. Every stock has fallen sharply, but every stock also has enough upside potential to ensure that it has a “buy” rating. TechnipFMC Plc (FTI) We will start from the hydrocarbon industry. TechnipFMC operates two divisions in the oil and gas business: subsea and ground. Until recently, the company’s projects included oil and gas exploration and extraction, drilling rigs and platform operations, crude oil refining, petrochemical (ethylene, benzene, naphtha, hydrogen) production and onshore and offshore liquefied natural gas (LNG) plants. Earlier this month, the petrochemical and LNG businesses were split into independent independent trading company Technip Energy. TechnipFMC retains the activities of seafloor and surface hydrocarbons so that the company can better concentrate. TechnipFMC may need to pay attention to this because it is difficult for the company to gain traction in the stock market. Like most of its peers, TechnipFMC saw a sharp drop in its stock price last winter at the height of the coronavirus crisis, but since then, the stock has only recovered about half of its losses. In the past 12 months, FTI’s stock price has fallen by 53%. The results of the fourth quarter today will be announced after the market closes, which will provide more enlightenment to the company’s full-year results. The company reported quarterly earnings for 2020, consistent with the results of the previous year. The second quarter showed a year-on-year loss. Both the first quarter and the third quarter increased year-on-year. Analyst Sean Meakim said of JPMorgan’s FTI: “Since the spin-off of Technip Energies was restarted at a 1/7 price, FTI’s share price is now falling after the first day of outstanding performance. “Spinning Purgatory”, investors are giving FTI a different perspective, and some people still adopt the approach of “waiting for changes” until the post-rotation. We regard the completion of the rotation as an opportunity for reassessment…allowing a wider range of investors Participate. The monetization of TechnipFMC’s shares in Technip Energies helps balance sheets and provides selectivity in capital allocation.” To this end, Meakim rated FTI as “overweight” (ie, “buy”), his 20 The dollar target price implies that the stock still has more than double upside potential in the coming year, with a 172% upside potential. (To view Meakim’s track record, click here.) Overall, there have been 13 recent comments on FTI, and the percentage of those who favor buying or holding has dropped by 8 to 5. This gives analysts a consensus rating of “medium buy” and implies that Wall Street usually sees opportunities here. The stock price is US$7.35, and the average price target is US$12.18, which means that the bull market has about 65% upside in the next 12 months. (See FTI stock analysis on TipRanks) CoreCivic, Inc. (CXW) Next, CoreCivic is a for-profit provider of detention facilities for law enforcement agencies (mainly the US government). The company owns and operates 65 prisons and detention facilities in 19 states and the District of Columbia, with a total capacity of 90,000 prisoners. From January 1 this year, the company has completed the conversion from REIT to taxable C Corporation. The move was carried out without much fanfare. The company reported its fourth-quarter and full-year 2020 results earlier this month, which covered the preparation period for the conversion. CXW shows that the highest revenue for the “Corona Year” in 2020 is US$1.91 billion, a slight decrease (3%) from the US$1.98 billion in 2019. Earnings per share for the full year were 45 cents. In the fourth quarter, the company reported paying off approximately $125 million of its long-term debt. CoreCivic’s current long-term liabilities are $2.3 billion. The company’s current assets at the end of 2020 show cash of USD 113 million, plus available credit of USD 566 million. A heavy debt burden may help explain the company’s stock performance, even if income and earnings are still positive. The stock has fallen 50% in the past 12 months and has never really recovered from the stock price losses suffered during the corona panic last winter. Joe Gomes, a five-star analyst at Noble Capital, reported on CoreCivic that although the stock price is clearly weak, he remains optimistic about the stock. “We think the fourth quarter is a continuing trend, and it is a trend in the last three quarters of 2020. Despite the COVID, the massive reduction in detainees, the reduction in the normal operation of the court system, and other impacts, CoreCivic’s revenue is Relatively flat and adjusted earnings per share growth. We believe that this illustrates the strength of the company’s operating model.” Gomes pointed out. Consistent with his optimism, Gomes maintained its outperform (ie buy) rating and a price target of $15. The upside potential of this target is 97%. (To view Gomes’ track record, click here.) Some stocks are growing fast, and CXW is one of them. Gomes is the company’s most recent analyst comment, and it must be affirmative. (See CXW stock analysis on TipRanks) To find a good idea for trading low-priced stocks with attractive valuations, please visit TipRanks’ “Best Buy Stocks”, a newly launched tool that can convert all TipRanks stocks Combine insights. Disclaimer: The views expressed in this article are only those of the main analyst. The content is for reference only. Before making any investment, it is very important to conduct your own analysis.