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2 Shares traded at very low prices; Analysts say ‘buy’
We are currently in a volatile period, as stocks are falling after starting the year on a good note. Big Tech, which has exploded during pandemic lockdowns and the shift to remote working, is leading the declines. Investors have taken the measure of immunization programs, and now, fueled by both a belief and a hope that the economies will soon return to a more normal situation, they are looking for stocks that will win, we will return to a ‘pre- corona ‘market situation. There is also inflation to take into account. Oil prices are on the rise this year, and it’s a commodity whose price fluctuations are sure to trickle down the supply chain. As consumer demand grows, prices are expected to rise, at least in the short term. Overall, now is the time to follow the old market advice: buy low and sell high. With stock prices falling for now and volatility rising, the bottom is hedged. The key is to find the stocks that are ready to win when the bulls start running again. The body of Wall Street analysts know it, and they’re quick to recommend stocks that may have bottomed out. Using the TipRanks database, we identified two of these stocks. Each is down significantly, but each also has enough upside potential to warrant a buy rating. TechnipFMC Plc (FTI) We will start with the hydrocarbons sector, where TechnipFMC operates two divisions in the oil and gas sector: subsea and surface. The company’s projects, until recently, included oil and gas exploration and extraction, drilling and platform operations, crude oil refining, petrochemical production (ethylene, benzene, naphtha , hydrogen), as well as offshore and offshore liquefied natural gas (LNG) plants. Earlier this month, the petrochemicals and LNG businesses were split up as Technip Energy, an independent independent company. TechnipFMC retains subsea and surface hydrocarbon activities, allowing the company to better focus its efforts. TechnipFMC may need this focus as the company has struggled to gain traction in the stock markets. Like most of its peers, TechnipFMC saw the stock’s value drop sharply last winter at the height of the coronavirus crisis, but since then the stock has only recovered about half of the losses. Over the past 12 months, FTI shares have fallen by 53%. Fourth quarter results are expected today, after markets close, and should further shed light on the company’s full year performance. The company released quarterly results for 2020 that are in line with the results of the previous year. The second quarter showed a loss year over year; The first and third quarters both posted year-over-year gains. Covering FTI for JPMorgan, analyst Sean Meakim writes: “Since the Technip Energies spin-off was put back into motion on 1/7, after a considerable outperformance in the early days, FTI stocks are now down… With new visibility at the exit of “Spin Purgatory”, investors give FTI another look, some still adopting a “wait and see” approach until the end of the spin… We see the completion of the spin as a reassessment opportunity … Allowing a wider participation of investors. The monetization of TechnipFMC’s stake in Technip Energies contributes to the balance sheet and offers a capital allocation option. To that end, Meakim assigns FTI an overweight (i.e. a buy) and its price target of $ 20 suggests the stock could more than double in the coming year, with the potential for. 172% increase. (To see Meakim’s track record, click here) Overall, there are 13 recent criticisms of FTI, with an 8-5 rating in favor of buying versus conservation. This makes the analysts’ consensus rating a moderate buy and suggests that Wall Street generally sees an opportunity. The shares are priced at $ 7.35, and the average price target of $ 12.18 implies a ~ 65% bullish rise over the next 12 months. (See FTI Market Analysis on TipRanks) CoreCivic, Inc. (CXW) Next, CoreCivic, is a for-profit provider of detention centers for law enforcement, primarily the US government. The company owns and operates 65 prisons and detention centers with a total capacity of 90,000 inmates, located in 19 states plus DC. Effective January 1 of this year, the company completed its transfer from a REIT to a taxable C corporation. The move was made without fanfare, and the company released its fourth quarter and full year 2020 results – which covers the period of preparation for the change – earlier this month. CXW posted revenue of $ 1.91 billion for the “ corona year ” of 2020, a slight decrease (3%) from the $ 1.98 billion reported in 2019. Annual profit amounted to 45 cents per share. During the fourth quarter, the company said it repaid some $ 125 million of its long-term debt; CoreCivic’s current long-term liabilities are $ 2.3 billion. The company showed liquid assets available at the end of 2020 at $ 113 million in cash, plus $ 566 million in available credit. Heavy leverage can help explain the performance of the company’s stock, even if income and earnings remain positive. The stock has fallen 50% in the past 12 months, never really recovering from the stock price losses suffered during last winter’s corona panic. 5-star analyst Joe Gomes of Noble Capital covers CoreCivic, and remains bullish on the stock despite its apparent weaknesses. “We see the fourth quarter as a continuation of a trend, one over the last three quarters of 2020. Despite COVID, the sharp reduction in the number of detainees, the reduction in the normal functioning of the justice system and other impacts, CoreCivic recorded relatively stable revenues. and the adjusted sequential growth of BPA. We believe this illustrates the strength of the company’s operating model, ”noted Gomes. In keeping with his bullish approach, Gomes is keeping his outperformance (i.e. buy) rating and price target of $ 15 as is. This target puts the upside potential at 97%. (To see Gomes’ record, click here) Some stocks are going under the radar, and CXW is one of them. Gomes is the only recent analyst review for this company, and it’s decidedly positive. (See CXW Stock Analysis on TipRanks) To find great ideas for trading battered stocks at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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