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2 shares trade at the lowest prices; Analysts say ‘buy’
We are currently in a volatile period as the stock started to decline after a strong note. Big Tech, which was booming during the pandemic exclusions and the move to remote work, is leading the declines. Investors have taken the measure of the vaccination program, and now, fueled by faith and hope that economies will soon return to normal, they are looking for the shares they will win, we will return to a ‘pre-corona’ market situation . There is also inflation to take into account. The oil price has risen this year, and it is one commodity whose price fluctuations will surely drop the supply chain. Along with rising consumer demand, prices are expected to rise at least in the short term. All in all, this is the moment to seek out the old market advice: buy low and sell high. With stock prices falling for the time being, and volatility rising, the low is being covered. The key is to find the stocks that can be pre-empted if the bulls start running again. The Wall Street analysts know this, and they do not hesitate to recommend stocks that could possibly reach the bottom. Using the TipRanks database, we identified two such stocks. Each is significantly lower, but each also has enough upward potential to justify a buy rating. TechnipFMC Plc (FTI) We start in the hydrocarbon sector, where TechnipFMC operates two divisions in the oil and gas industry: underwater and surface. Until recently, the company’s projects included oil and gas exploration and exploitation, rig and platform operations, refinery, petrochemical (ethylene, benzene, naphtha, hydrogen) production, as well as domestic and foreign liquefied natural gas (LNG) plants. Earlier this month, the petrochemical and LNG operations were singled out as Technip Energy, a separate independent trading company. TechnipFMC keeps the underwater and hydrocarbon activities on the surface, allowing the company to better focus its efforts. TechnipFMC may need the focus as the company is having a hard time succeeding in the stock markets. Like most of its peers, TechnipFMC dropped its share value sharply last year 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%. The Q4 results will appear today, after the market closes, and should shed more light on the company’s performance during the year. The company reported quarterly earnings in 2020 that are consistent with previous year’s results. The second quarter showed a year-on-year loss; Q1 and Q3 both showed yoy gains. Sean Meakim, analyst at JPMorgan, wrote FTI for JPMorgan: ‘As the spin-off of Technip Energies resumed at 1/7, after performing significantly better in the first days, FTI shares are now lower … With newfound visibility leading to an exit from ‘Spin Purgatory’, investors are giving FTI another look, while some are still taking a wait-and-see approach until after the turn … We are considering the completion of the turnaround as a review opportunity … enabling broader investor participation. Monetization of TechnipFMC’s stake in Technip Energies helps the balance sheet and provides capital allocation options. For this purpose, Meakim FTI is judging an overweight (ie buying), and its price target of $ 20 indicates that the share may more than double in the coming year, with an upward potential of 172%. (To see Meakim’s record, click here.) Overall, there are 13 recent reviews on FTI, which ranks 8 to 5 in favor of Buy versus Hold. This makes the analyst’s consensus assessment a moderate buy, and suggests that Wall Street usually sees opportunity here. Shares are priced at $ 7.35, and the average price target of $ 12.18 implies a bullish rise of ~ 65% over the next 12 months. (See FTI stock analysis on TipRanks) CoreCivic, Inc. (CXW) CoreCivic is a lucrative detention facility for law enforcement agencies, 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. With effect from 1 January this year, the company has completed its transition from a REIT to a taxable C corporation. The move was made without fanfare, and the company reported earlier this month its Q4 and full-year 2020 report, which covers the preparation period for the switchover. CXW showed a $ 1.91 billion top line for the 2020 corona year, a slight drop (3%) from the $ 1.98 billion reported in 2019. The annual earnings were 45 cents per share. During the fourth quarter, the company paid off about $ 125 million of its long-term debt; CoreCivic’s current long-term liabilities are listed as $ 2.3 billion. The company made $ 113 million in cash, plus $ 566 million in available credit, at the end of 2020. The heavy debt burden can help explain the company’s share performance, even if revenue and earnings remain positive. The stock has fallen by 50% over the past twelve months, after never really recovering from the share price losses suffered during the corona panic last winter. 5-star analyst Joe Gomes, of Noble Capital, treats CoreCivic and remains scarce despite his apparent weaknesses. “We view the fourth quarter as a continuation of a trend, during the last three quarters of 2020. Despite COVID, the large reduction in detainees, the reduction of the normal functioning of the legal system and other consequences, CoreCivic has a relative low income. and successive adjusted EPS growth. We believe that this illustrates the strength of the company’s operating model, ”notes Gomes. Consistent with its optimistic approach, Gomes maintains its Outperform (ie Buy) rating and its $ 15 price target as well. This target sets the upside potential at 97%. (Click here to see Gomes ‘record. Some stocks are flying under the radar, and CXW is one of them. Gomes’ is the only recent reviewer of these analysts, and it’s definitely positive. (See CXW stock analysis on TipRanks) To find great ideas for struggling stocks trading at attractive valuations, visit TipRanks ‘best-selling stocks, a newly launched tool that unites all of TipRanks’ equity insights. those of the proposed analysts.The content is for informational purposes only.It is very important to do your own analysis before investing.