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2 stocks trading at rock bottom prices; Analysts say ‘buy’
We are currently in a volatile period as equities are declining after a strong start to the year. Big Tech, which boomed during the pandemic lockdowns and transition to remote working, is leading the declines. Investors have taken the measure of the vaccination programs, and now, fueled by both the belief and the hope that economies will soon return to normal, they are seeking out those stocks that will gain and we are returning to a pre-corona market situation. There is also inflation to consider. Oil prices are on the rise this year, and that’s a commodity whose price swings are sure to trickle down the supply chain. Along with rising consumer demand, prices are expected to rise, at least in the short term. All in all, now is the time to follow the old market advice: buy low and sell high. With stock prices falling for the time being and volatility on the rise, the bottom is covered. The key is to find the stocks that are ready to win when the bulls start running again. The Wall Street analyst corps knows this and they are not afraid to recommend stocks that may have bottomed out. Using the TipRanks database, we tracked down two such stocks. Each has fallen significantly, but each also has enough upside potential to warrant a Buy rating. TechnipFMC Plc (FTI) We start in the hydrocarbon sector, where TechnipFMC has two divisions in the oil and gas sector: underwater and above water. The company’s projects until recently included oil and gas exploration and extraction, drilling rigs, crude oil refining, petrochemical production (ethylene, benzene, naphtha, hydrogen) and both on- and offshore liquefied natural gas (LNG) installations . Earlier this month, the petrochemical and LNG activities were split off into Technip Energy, a separate independently traded company. TechnipFMC will retain its subsea and surface hydrocarbon operations, allowing the company to better focus its efforts. TechnipFMC may need that focus as the company has struggled to get to grips with the stock markets. Like most of its competitors, TechnipFMC saw its stock value plummet last winter at the height of the coronavirus crisis, but since then the stock has regained only about half of its losses. In the past 12 months, shares of FTI have fallen by 53%. The fourth quarter results will be released today, after market close, and should shed more light on the company’s performance over the year. The company has reported quarterly results in 2020 that are in line with last year’s results. The second quarter showed a loss on an annual basis; Q1 and Q3 both showed annual sales. Analyst Sean Meakim writes about FTI for JPMorgan: “Since the Technip Energies spin-off was put back into motion at 1/7, after performing significantly better in the early days, FTI shares have now fallen … renewed visibility to an exit from “Spin purgatory”, investors take another look at FTI and some still take a “wait and see” approach to post spin … We see the completion of the spin as a revaluation opportunity … allowing for a broader holding of investors is possible. Realizing the importance of TechnipFMC in Technip Energies helps balance and provides opportunities for capital allocation. To that end, Meakim rates FTI as overweight (i.e. buy) and its $ 20 price target suggests the stock has room to more than double in the coming year, with 172% upside potential. (To view Meakim’s track record, click here) In total, there are 13 recent reviews on FTI, with a breakdown of 8 to 5 in favor of Buy versus Hold, which leads the analysts to assess the consensus of a moderate buy, suggesting that Wall Street is generally likely to see opportunities here. The stock is priced at $ 7.35 and the $ 12.18 average price target implies a ~ 65% bullish rise over the next 12 months. (See FTI Stock Analysis on TipRanks) CoreCivic, Inc. (CXW) The Next, CoreCivic, is a profitable provider of detention facilities for law enforcement agencies, primarily the US government, which owns and operates 65 prisons and detention centers with a total capacity of 90,000 inmates. n in 19 states plus DC. Effective January 1 of this year, the company completed the transition from a REIT to a taxable C corporation. The move was made without much fanfare, and the company reported fourth quarter and full-year 2020 results earlier this month – covering the preparation period for the move. CXW posted revenue of $ 1.91 billion for the 2020 ‘corona year’, a small decrease (3%) from the $ 1.98 billion reported in 2019. Full year earnings were 45 cents per share. During the fourth quarter, the company reported that it had paid off approximately $ 125 million of its long-term debt; CoreCivic’s current long-term liabilities are listed as $ 2.3 billion. The company showed cash at the end of 2020 as $ 113 million in cash, plus $ 566 million in available credit. The heavy debt burden can help explain the company’s stock performance, even though earnings and earnings remain positive. The stock has fallen 50% in the past 12 months and has never really recovered from price losses incurred during last winter’s corona panic. Five-star analyst Joe Gomes, of Noble Capital, treats CoreCivic and remains optimistic about the stocks despite apparent weaknesses. “We view the fourth quarter as a continuation of a trend, one over the last three quarters of 2020. Despite COVID, the large decline in the number of detainees, the decline in the normal operation of the justice system and other effects, CoreCivic posted relatively flat income. and consecutive adjusted EPS growth. We believe this illustrates the strength of the company’s business model, ”noted Gomes. In line with its optimistic approach, Gomes keeps its Outperform rating (i.e. Buy) and its $ 15 price target unchanged. This target sets the upside potential at 97%. (To view Gomes’s track record, click here) Some stocks are flying under the radar, and CXW is one of them. Gomes’ is the only recent analyst review of this company, and it is decidedly positive. (See CXW Stock Analysis on TipRanks) To find great ideas for discounted stocks that trade at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a recently launched tool that brings together all of TipRanks’ insights on stocks. Disclaimer: The opinions expressed in this article are solely those of the recommended analysts. The content is provided for informational purposes only. It is very important to conduct your own analysis before making an investment.