Connect with us

Business

Analysts say buy these three battered stocks before they rebound

Avatar

Published

on

After the awful year of 2022, with the last quarter now beginning, investors are hoping for a rally late in the year. According to Ryan Dettrick, chief market strategist at Carson Group, this is not a far-fetched idea.

Dietrich recently wrote: “While October is known for meltdowns, it really is a killer for the bear market.” Very pessimistic and positive seasons are around the corner, we will be open to that.”

Morale is already low. Bearish sentiment – according to the American Association of Retail Investors survey at the end of September – is at 60.8%, near record highs. This is a somewhat conflicting indicator. Historically, when sentiment was at its lowest, it often indicated that a bottom was in sight.

So, with a rebound potential in the cards, let’s take a look at three names that could go along with a deserved bounce, at least according to some Street analysts. These are the stocks that have fallen significantly this year, with a drop of 60% or more. However, according to TipRanks . databaseEach also features a strong buy-analyst consensus rating and strong upside potential.

Cyxtera Technologies (CYXT)

Advertisement

The digital age has brought with it huge amounts of data that needs to be stored somewhere, which in turn has led to an increase in the global demand for data centers. This is where Cyxtera Technologies enters the framework. The company is a big player in hosting and data center interconnection services; Cyxtera has 60 data centers spread across 30 markets, with more than 2,300 private enterprise and public sector clients utilizing its services.

Cyxtera is relatively new to the stock market, having gone public via the SPAC track in July 2021. This is an unfortunate timing as anyone who has been following the fate of SPAC for the past year and a half or so will know. SPACs have had a miserable time and so have CYXT stocks; They’re down 76% year over year, a performance not helped by several factors.

In the most recent set of quarterly results—for the second quarter of ’22—revenue increased 5.3% year-over-year to $184.7 million, missing a street forecast of $0.3 million. There was a more specific error in the bottom line, with EPS of $0.27 down 6 cents from the consensus estimate of $0.21.

However, assessing the company’s prospects, Trustee analyst Gregory B Miller Thought this is the time to download.

Advertisement

“Despite the current macroeconomic headwinds and weak stock performance to date, we believe the fundamentals remain largely the same and increasingly believe in the ability of the Cyxtera management team to capitalize on industry tailwinds (such as expanding data use and digitizing the economy). We continue to believe Cyxtera is well positioned in the long term with increased use in key markets and expansion into resource-limited areas as well as improved MRR/c pricing,” Miller said.

Miller is certainly optimistic. Combined with the buy rating, the analyst’s $15 target price lends itself to 12-month returns of a whopping 400%. (To watch Miller’s log, click here)

Other analysts’ forecasts are hardly less optimistic. Both other reviewers are positive, which makes the unanimous view here a solid buy. Furthermore, the average target of $14 indicates that the shares will trade at a premium of 367% annually from now. (See Cyxtera stock forecast on TipRanks)

whole earth brandsFree)

Let’s now turn to a company that also deals with modern concerns but with a completely different hue – those of the earthy kind. As its name suggests, Whole Earth Brands focuses on wellness, which is an increasingly important lifestyle choice for large parts of the population. Many consumers are now looking for natural, plant-based, and healthy products, and Whole Earth Brands caters to this consumer base with a selection of brands. On the CPG side, these include Whole Earth, Pure Via, Wholesome, Swerve, Canderel, and Equal, while the flavors and ingredients segment includes Mafco, the leading manufacturer of natural plant-based licorice products.

In its most recent quarterly statement, for the second quarter of ’22, revenue was $133.5 million, representing 5.5% year-over-year growth, while outpacing Street’s call by $2.85 million. However, the company missed expectations for its bottom line, with earnings per share of $0.03 below analysts’ expectations of $0.10. Management reaffirmed its full-year guidance, with revenue projected between $530 million and $545 million — mid-point above consensus at $535.24 million.

Advertisement

The stock, like many others, has been hit hard this year, and the stock is now trading at 68% off price at the start of 2022.

This could be an opportunity, according to the thesis put forward by five-star analyst Mark Smith of Lake Street.

“We believe the company continues to successfully execute and run the business despite the challenging operating environment. We believe that the current headwinds are temporary and that the equity gains and operational improvements being made will make it a stronger company once the market improves. We believe the company is on the right path to becoming a branded CPG company. + $1 billion,” Smith said.

The analyst summed up: “We believe the current valuation is attractive and Whole Earth offers investors an opportunity to buy a branded CPG company with a long growth path backed by a secular tailwind.”

Smith thinks the stock has some way to go, and in a way, we mean 303% of the upside. These are the returns that investors are looking for, should the stock reach Smith’s $14 target price. No need to add, the analyst rating is a buy. (To watch Smith’s record, click here)

Advertisement

Now moving to the rest of the street, other analysts also like what they see. 4 Buying and no holding or selling add to the strong buy consensus rating. Not to mention that the average target price of $12 indicates a 246% upside potential. (See Free Stock Forecasts on TipRanks)

Calvista Pharmaceuticals (Calv)

Now let’s change gears again and take a look at biotechnology. KalVista Pharmaceuticals has focused on the discovery, development and delivery of small molecule protease inhibitors to the market indicated for the treatment of diseases with significant unmet needs. More specifically, the candidate drugs are designed to be best-in-class treatments for hereditary angioedema (HAE) and diabetic macular edema (DME).

The fortunes of biotech stocks are highly dependent on the success or failure of its pipeline, and here KalVista recently announced a negative development that pushed the stock into a meltdown; Last week, the company said it was ending its KVD824 program to treat hereditary angioedema after several patients showed elevated liver enzymes in a mid-stage trial.

While this is unfortunate, the lack of success does not necessarily extend to other programs. Of note here is KVD900 (sebetralstat) which is a different compound used to treat hereditary angioedema. The property has successfully completed a Phase II study and the company will now focus on completing Phase III of the ongoing KONFIDENT trial; Results are expected to be announced at 2H23 and should support the submission of the NDA the following year.

To this end, analyst Needham Serge Belanger He’s still in the bull camp and doesn’t see any reason to change course.

Advertisement

“The decision to terminate the KVD824 is not expected to have any reading of the KVD900 program as they are different vehicles,” the analyst explained. “We note that KVD900 previously completed a phase 2 PoC trial as treatment for acute HAE in 68 patients without observations of liver enzyme elevation.”

“KALV remains well-funded with approximately $142 million in cash (as of 7/31/22) which provides a good runway through 2024,” Bellanger continued, adding, before concluding by saying: “We see any negative movement in KALV shares beyond 30 – 35% as an overcorrection given that the main driving asset KVD900 was unaffected.”

This scenario and some have been implemented. Stocks over the past week have claimed 67% of their previous valuation. And while Belanger’s target price has been cut from $38 to $24 to “reflect the termination” of the KVD824 program, investors should not despair too much; The new figure still gives way to about 412% gains over the one-year time frame. Belanger’s rating remains “buy”. (To watch Bellanger’s record, click here)

Judging by the breakdown of consensus, opinions are not at all divergent. With 5 buys and no holdings or selling in the last 3 months, the word on the street is that KALV is a solid buy. At $26.80, the average target price indicates a 471% upside potential. (See KALV stock forecast on TipRanks)

To find good stock trading ideas with attractive ratings visit TipRanks’ Best stocks to buya newly launched tool that unifies all of TipRanks’ stock insights.

Disclaimer: The opinions expressed in this article are solely those of a distinguished analysts. The content is intended for informational use only. It is very important to do your own analysis before making any investment.

Advertisement

Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Business

Bitcoin plunges 70% on Standard Chartered’s list of potential disruptions for 2023

Avatar

Published

on

(Bloomberg) — Speculators clinging to the view that the cryptocurrency’s path is over are mostly at risk of a rude awakening in 2023, according to Standard Chartered Bank.

Most Read from Bloomberg

Another “surprising” scenario that markets could be “underpriced,” Eric Robertson, the bank’s global head of research, wrote in a note Sunday, another bitcoin drop of about 70% to $5,000 next year.

Robertson said demand could shift from bitcoin as a digital version of gold to real gold, leading to a 30% rally in the yellow metal.

Advertisement



Robertson added that this likely outcome includes a reversal in higher interest rates as economies struggle, more bankruptcies and a collapse in investor confidence in digital assets.

He stressed that he was not making predictions but instead summarizing scenarios that are materially outside the current market consensus.

Arguably, the question of what lies ahead for digital assets wasn’t difficult to answer after the collapse of Sam Bankman-Fried’s FTX exchange and sister trading house Alameda Research. The spreading tremors from the explosion threaten to bring down more crypto companies and token prices.

For some, much of the bad news may already be reflected in the more than 60% drop in bitcoin and a scale of the top 100 tokens over the past year.

“Our bottom line is that most of the forced selling is over, but investors may not be compensated for the market risk incurred in the near term,” Sean Farrell, Fundstrat’s head of digital asset strategy, wrote in a note on Friday.

Advertisement



Farrell pointed to the ongoing uncertainty surrounding Digital Currency Group, the parent company of beleaguered crypto brokerage Genesis. Genesis creditors are looking at options to try to prevent the brokerage from falling into bankruptcy.

gold forecast

Robertson of Standard Chartered said that a surprising market scenario of gold rallying as cryptocurrencies decline could see the precious metal measure at $2,250 an ounce.

“Gold will benefit from cryptocurrency woes going forward, with the sudden downturn in confidence in the cryptocurrency ecosystem,” said Nicholas Vrabel, global head of institutional markets at ABC Refinery in Sydney.

Advertisement



The cryptocurrency sector continues to shrink. For example, digital asset exchange Bybit plans to cut its workforce by 30%, the latest in a series of layoffs to hit the industry.

There could be more pain ahead: About 94% of respondents to Bloomberg’s MLIV Pulse survey believe more blowouts will follow FTX’s bankruptcy as years of easy credit give way to a tougher business and market environment.

Bitcoin at the moment is fairly stable. The largest virtual currency was up 1.8% on Monday and was trading at a three-week high of $17,340 as of 2:35pm in Tokyo. It also gained codes like Ether, Solana, and Polkadot.

For crypto market prices: CRYP; For the most important cryptocurrency news: TOP CRYPTO.

–Assisted by Sing Yee Ong.

Advertisement



Most Read by Bloomberg Businessweek

© Bloomberg LP 2022

Source link

Continue Reading

Business

Dollar falls as easing of restrictions in China boosts risk sentiment By Reuters

Avatar

Published

on

© Reuters. FILE PHOTO: One hundred US dollar banknotes are seen in this illustration taken in Seoul on February 7, 2011. REUTERS/Lee Jae-won/File Photo

SINGAPORE (Reuters) – The dollar fell broadly on Monday after a rough week, weakening below 7 yuan as sentiment towards riskier non-dollar assets improved after signs of China easing some coronavirus-related restrictions.

More Chinese cities, including financial hub Shanghai and Urumqi in the far west, announced easing coronavirus restrictions over the weekend as China tries to soften its stance on COVID-19 restrictions in the wake of unprecedented protests against the policy.

“They may seem like small steps, but nonetheless they are a strong sign that China is taking measured steps toward reopening,” said Christopher Wong, currency analyst at OCBC.

China is preparing to announce soon easing nationwide testing requirements, as well as allowing positive cases and close contacts to isolate at home under certain conditions, people familiar with the matter told Reuters last week.

Advertisement



The dollar fell below 7.0 yuan in foreign trade, while it jumped about 1.4% to 6.9507 on Monday morning, the strongest level since Sept. 13.

The euro, which measures the currency against six major peers including the yen and the euro, fell 0.18% to 104.28, its lowest since June 28.

The index fell 1.4% last week, capping a 5% decline for November, its worst month since 2010, on mounting expectations that the Federal Reserve is ready to scale back interest rate hikes after four consecutive 75-bps. Points increase.

Investors’ focus will be on US consumer price inflation data due on December 13, a day before the Federal Reserve wraps up its two-day policy meeting.

The US central bank is expected to raise interest rates by an additional 50 basis points at the meeting. Fed fund futures traders are now pricing the Fed’s benchmark rate to a peak of 4.92% in May.

Advertisement



OCBC’s Wong said some degree of caution is still warranted because the Fed is not done tightening. “They’re still tightening up, it’s just that it’s going to be in baby steps.”

Traders appeared to be looking beyond the stronger-than-expected US jobs report for November on Friday after some Federal Reserve speakers calmed market concerns.

“We’ve blown past the US payrolls with a temporary jolt to risk markets,” said Chris Weston, head of research at Pepperstone, noting that the data supports the “soft landing” argument and is unlikely to change the Fed’s course.

Meanwhile, the Japanese yen was down 0.04% against the dollar at 134.37 per dollar, after rising 3.5% last week, off October’s low of 151.94.

The euro rose 0.38% to $1.0578, after rising 1.3% last week. It had earlier touched its highest level in more than five months at $1.05835.

Advertisement



The pound rose to $1.23450, the highest level since June 17, and was last trading at $1.2339, up 0.42%.

The Australian dollar rose 0.75% to $0.684, while it rose 0.31% to $0.643.

================================================== == ======

The currency bid prices are at 0520 GMT

Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid

Advertisement



previous change

session

EUR/USD 1.0580 $1.0541 +0.37% -6.94% +1.0584 +1.0512

USD/JPY 134.3800 134.2950 +0.00% +16.75% +134.7600 +134.2800

EUR/JPY 142.18 141.53 +0.46% +9.10% +142.2200 +141.5700

Advertisement



USD/CHF 0.9349 0.9368 -0.19% +2.51% +0.9393 +0.9344

GBP/USD 1.2337 1.2293 +0.37% -8.76% +1.2343 +1.2251

USD/CAD 1.3401 1.3474 -0.54% +5.99% +1.3473 +1.3386

AUD/USD 0.6841 0.6794 +0.63% -5.94% +0.6851 +0.6764

NZ 0.6429 0.6413 +0.27% -6.06% +0.6442 +0.6367

Advertisement



dollars / dollars

All spots

locations in Tokyo

Spots in Europe

twists

Advertisement



Tokyo forex market information from Bank of Japan

Source link

Continue Reading

Business

The Dow shines as tech stocks squeeze higher on the Nasdaq

Avatar

Published

on

The Dow Jones Industrial Average is outperforming the broader S&P 500 to an extent not seen in nearly a century.

Source link

Continue Reading
Advertisement

Trending