šŸ˜šŸ˜

7 Biggest Bargain Stocks to Buy Before They Rebound

@AfraSimonļ¼š
Petrobras$Petroleo Brasileiro SA Petrobras(PBR)$ (PBR) ā€” Its low breakeven and consistent earnings displays could see it re-ignite its previous growth. Euroseas$Euroseas(ESEA)$ (ESEA) ā€” Global dry bulk restructuring could see its vessels be in high demand. Bank of America$Bank of America(BAC)$ (BAC) ā€” A near 20% stock sell-off is unwarranted as its interest-bearing operations could catch up soon. ARMOUR Residential REIT$ARMOUR Residential REIT Inc(ARR)$ (ARR) ā€” Diversified MBS activities could sustain ARMOURā€™s massive 15.08% dividend yield. Canadian Solar(CSIQ) $Canadian Solar(CSIQ)$ ā€” Underappreciated stock as the company shipped 3.8 gigawatts in the last quarter and anticipates robust revenue for the year. HP(HPQ)$HP Inc(HPQ)$ ā€” We could see a rebound after its downgrade last week. HPā€™s prospects remain bright as its product portfolio is well diversified. Impala Platinum$Impala Platinum Holdings Ltd.(IMPUY)$ (IMPUY) ā€” A rebound is overdue as sustained PGM prices and the firmā€™s access to critical deposits add significant value. Thereā€™s no doubting the fact that weā€™re in a value environment.Vanguardā€™s exchange traded funds (ETFs) suggest that value has outperformed growth by roughly 12% in the past year. The reason for this is simply due to inflation and its correlation with safer value stocks rather than risky growth assets. I found seven underrated value stocks to buy that I believe could rebound shortly. Whether you buy them or not is totally up to you, but I guarantee you that theyā€™re ā€œA-gradeā€ assets that possess maximum risk-return utility! PBR Petroleo Brasileiro $14.71 ESEA Euroseas $24.71 BAC Bank of America $37.57 ARR ARMOUR Residential REIT $7.96 CSIQ Canadian Solar $33.51 HPQ HP $37.47 IMPUY Impala Platinum Holdings $14.70 Petrobras (PBR) Petrobras(NYSE:PBR) has stagnated recently after gaining more than 70% year-over-year. I see no reason why the Brazilian petroleum producer should slow down. Geographically speaking, the firmā€™s operating in a captive market, allowing it to operate at a breakeven price of as little as$20 per barrelof oil. PBRā€™s year-end financial statements were released in February, which revealed that it smashed past its all-time profit record by delivering$21.3 billionin net income. The stockā€™s trading at a 5-year forward price-to-earnings (P/E) discount of62.22%, leaving investors with substantial value to capitalize on. Euroseas (ESEA) This stock has seen the wrong end of things as itā€™s inextricably linked to port congestion and higher shipping fees.Euroseas(NASDAQ:ESEA) has lost more than15% of its value over the past six months and is due for a rebound. Euroseas charters to many dry bulk transporters, which is beneficial at this stage considering the surge in coal and food exports amid an ex-Russia trade environment. ESEA stock is undervalued as itā€™s trading at a sector price-to-earnings discount of 77.34%. Additionally, ESEA exhibits a forward operating cash flow of 2.82x, suggesting that its intrinsic value is set to remain intact. Bank of America (BAC) Bank of America(NYSE:BAC) has lost nearly 20% of its market value since the turn of the year. An underwhelming debt market and a slowdown in trading activities have caused serious headwinds for the stock. However, Iā€™m encouraging my readers to be forward-looking. I see tremendous strength ahead for the debt market, and BAC could also benefit from trading activities in a rejuvenated Chinese economy, which grew by 4.8% during the first quarter. BAC stock is tremendously undervalued. Iā€™ve been saying for a while now that Iā€™d rather buy bank stocks at a discount than stay in other overcooked sectors. Bank of America is trading at a price-to-sales of 3.41xand a price/earnings-to-growth (PEG) ratio of 0.12x, leaving me very optimistic about the stockā€™s prospects. ARMOUR Residential REIT (ARR) With 30-year mortgage rates now above 5%, I could easily see ARMOUR(NYSE:ARR) rebound from its year-to-date slump. The real estate investment trusts (REIT) is invested in a diverse range of fixed, hybrid, and adjustable-rate mortgage-backed securities, which is proving to be very profitable. The debt market could reach an inflection point soon where inflation could slow down, but interest rates could be elevated. Sure, this will give rise to mortality rates; however, ARR is a diversified vehicle, which is somewhat immune to slight weakness in FICO scores. ARMOUR provides an outstanding forward dividend yield worth 15.08% and has grown its asset base by 21.88% in the past year. Iā€™m definitely bullish. Canadian Solar (CSIQ) Canadian Solar(NASDAQ:CSIQ) is an underappreciated company and stock; itā€™s as simple as that. A more than 20% year-over-year downturn has drawn the stock down to a price-to-sales discount of2.56x and a price-to-book multiple of only 1.18x. The companyā€™s inference sales are in overdrive amid a global pivot towards renewable energy. CSIQ recently beat its fourth-quarter earnings target by 4 cents per share as its quarterly shipping amounted to 3.8 gigawatts. Canadian Solarā€™s management anticipates a strong showing for the rest of 2022, with full-year revenues expected to land between $7 to $7.5 billion. Systemic tailwinds could assist Canadian Solar stock as the re-investment rates in renewable energy will likely be higher amid an ex-Russia energy supply world. Iā€™m backing this asset to rebound to substantial highs this year. Hewlett Packard (HPQ) HP(NYSE:HPQ) capitulated by more than 5% last week after UBS(NYSE:UBS)downgradedthe stock based on a weaker consumer sales outlook. I am afraid I have to disagree with the narrative as HP caters to a specific market and has a range of hardware and software offerings that smooth segmental earnings volatility. Furthermore, support could be garnered from the firmā€™s enterprise sales segment as necessary upgrades, and customer loyalty could play a role. HPQ recently dominated its first-quarter earnings estimates by surpassing its earnings target by 8 cents per share. The company experienced robust demand on a company-wide basis, leading to record revenues worth $17.03 billion. The stock is undervalued at a price-to-sales ratio of only 0.67x. Impala Platinum (IMPUY) Impala Platinum(OTCMKTS:IMPUY) or Implats, is one of the worldā€™s foremost producers of platinum group metals. The stock rose sharply at the turn of the year but has since slowed down on reports that itā€™s facing midstream congestion problems. In addition, Implats suffered an unexpected5% half-year decline in sales volume, leading to a minor stock capitulation. I think Impala Platinumā€™s fortunes will change soon. At an EV/EBITDA multiple of 3.40x, the stock is one of the most efficient PGM miners out there, with tremendous potential amid elevated precious metals prices. The companyā€™s Impala mine in South Africa provides access to the renowned Merensky and UG2 reefs, which gives the company a tremendous competitive advantage. Implatsā€™s Beta coefficient of 1.60 means that itā€™s a volatile stock, but it could be a multi-bagger if itā€™s entered at the right price.
7 Biggest Bargain Stocks to Buy Before They Rebound

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
empty
No comments yet