2 Shares trading at minimum prices; Analysts say ‘buy’
We are in a volatile period at the moment as stocks tumble after starting the year on a solid note. Big Tech, which flourished during pandemic shutdowns and the shift to remote work, is leading the declines. Investors have taken the measure of vaccination programs, and now, driven by the belief and hope that economies will soon return to a more normal base, they are looking for those actions that will see us return to a ‘pre-crown. ‘ Market situation. Inflation must also be taken into account. Oil prices have risen this year, and that is a product whose price fluctuations are sure to seep through the supply chain. Along with increased consumer demand, there is an expectation that prices will rise, at least in the short term. All in all, this is the time to follow the old market advice: buy low and sell high. With stock prices falling for now and volatility on the up, the low is covered. The key is to find the stocks that are poised to win when the bulls start running again. The Wall Street body of analysts knows this and is not shy about recommending stocks that may have bottomed out. Using the TipRanks database, we identified two of those actions. Each is down significantly, but each also has enough upside potential to warrant a Buy rating. TechnipFMC Plc (FTI) We will start in the hydrocarbons sector, where TechnipFMC operates two divisions in the oil and gas business: subsea and surface. The company’s projects, until recently, included oil and gas exploration and extraction, platform and platform operations, crude oil refining, petrochemical production (ethylene, benzene, naphtha, hydrogen) and liquefied natural gas (LNG) plants. both on land and offshore. Earlier this month, the petrochemical and LNG operations were spun off as Technip Energy, an independent publicly traded company. TechnipFMC retains subsea and surface hydrocarbon activities, allowing the company to better focus its efforts. TechnipFMC may need that approach, as the company has struggled to gain traction in the equity markets. Like most of its peers, TechnipFMC saw the value of stocks plummet last winter at the height of the coronavirus crisis, but since then stocks have only recovered about half of the losses. Over the past 12 months, FTI shares are down 53%. Fourth quarter results will be released today, after the market close, and should shed more light on the company’s annual performance. The company has reported quarterly earnings in 2020 that are in line with the previous year’s results. The second quarter showed a year-over-year loss; The first and third quarters showed year-on-year gains. Covering FTI for JPMorgan, analyst Sean Meakim writes: “Since the Technip Energies spin-off got back on track on 1/7, after surpassing considerably in the early days, FTI shares are now down … new visibility of an exit from “Spin purgatory”, investors are giving FTI another look and some continue to take a “wait and see” approach until after the spin … We see the end of the spin as a re-rating opportunity. allowing a broader participation of investors. The monetization of TechnipFMC’s stake in Technip Energies helps the balance sheet and provides optionality in capital allocation. “To this end, Meakim rates FTI overweight (ie buy) and its $ 20 price target suggests that the The stock has room to more than double in the coming year, with a potential upside of 172%. (To view Meakim’s track record, click here) Overall, there are 13 recent reviews on FTI, split 8-5 in favor. of Buy versus Hold. This leads the analyst consensus to rate a Moderate Buy and suggests that Wall Street generally sees an opportunity here. The stock is priced at $ 7.35 and the average target price of $ 12.18 implies a rise. bullish ~ 65% over the next 12 months. (See FTI stock analysis on TipRanks) CoreCivic, Inc. (CXW) Below, CoreCivic, is a for-profit provider of detention facilities for law enforcement agencies. law , mainly the government of the United States. The company owns and operates 65 prisons and detention centers with a total capacity of 90,000 inmates, located in 19 states plus DC. As of January 1 of this year, the company completed its switch from a REIT to a taxable C corporation. The move was made without fanfare, and the company reported its fourth-quarter and full-year 2020 results, which covers the period of preparation for the change, earlier this month. CXW showed a top line of $ 1.91 billion for the ‘crown year’ of 2020, a small drop (3%) from the $ 1.98 billion reported in 2019. Full-year earnings came in at 45 cents per share. During the fourth quarter, the company reported having liquidated about $ 125 million of its long-term debt; CoreCivic’s current long-term liabilities are listed at $ 2.3 billion. The company showed available liquid assets at the end of 2020 as $ 113 million in cash, plus $ 566 million in available credit. The heavy burden of debt can help explain the performance of the company’s stock, even when revenues and earnings remain positive. The stock is down 50% in the past 12 months, never having recovered from losses in share price incurred in the crown panic last winter. Five-star analyst Joe Gomes of Noble Capital covers CoreCivic and remains bullish on the stock despite its apparent weaknesses. “We view the fourth quarter as a continuation of the trend, one in the last three quarters of 2020. Despite COVID, the large reduction in detainees, the reduction in normal operations of the judicial system and other impacts, CoreCivic posted relatively flat revenues. and adjusted sequential growth of EPS. We believe this illustrates the strength of the Company’s operating model, ”said Gomes. In keeping with his bullish approach, Gomes is keeping his Best Performer rating (i.e. Buy) and his $ 15 price target as is. This objective places the upside potential at 97%. (To see Gomes’s history, click here) Some actions go unnoticed, 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 good ideas for trading past due stocks at attractive valuations, visit TipRanks Best Stocks to Buy, a recently launched tool that ties together all TipRanks stock prospects. Disclaimer: The opinions expressed in this article are solely those of prominent 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.