It's been a tumultuous few weeks in the stock market with fears about the pandemic and economy sending prices down across various sectors. Many companies were overvalued to begin with, making it difficult to find great buying opportunities even among the stocks experiencing steep losses. But they do exist and often not where you'd expect. One such stock is Levi Strauss and Co. ( NYSE:LEVI ) . Levi's stock trades at less than 20 times trailing 12-month earnings, and Wall Street expects this modest stock to gain 50% or more over the next year. Here's why it might be a great addition to your portfolio. Everyone is wearing jeans Levi's is an iconic apparel brand whose name is inextricably linked with blue denim. It's one of the oldest clothing brands in the U.S., but the company has only been public since 2019, aside from an earlier stint on the markets over three decades ago. Image source: Getty Images. 2020 was a difficult time for the company as it was for most … [Read more...] about Wall Street Expects This Cheap Stock to Grow 60%
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Share to Twitter Share to Linkedin Big data and analytics player Palantir’s stock (NYSE: PLTR) has already lost about 21% of its value year-to-date in 2022, underperforming the S&P 500 which is down by about 6%. The stock also remains down by almost 45% from its November 2021 highs. While high-growth software stocks have seen a sell-off, due to the prospect of rising interest rates and the broader market rotation out of pandemic winners into real economy sectors, there are some stock-specific factors that are impacting Palantir, as well. For example, investors are likely a bit concerned about the slower growth at the company’s government business over Q3 2021 and also due to its growing dependence on the U.S. market for commercial revenue growth. However, we think that Palantir stock looks like a good pick at its current market price of about $15 per share. Despite the recent concerns, Palantir’s overall growth rate is likely to remain solid. Sales are on … [Read more...] about Down 45% Since November, Is Palantir Stock A Buy?
Share to Twitter Share to Linkedin Shares of 1Life Healthcare — parent company of One Medical, a San Francisco-based provider of healthcare membership services — has taken investors on a bumpy ride since it went public two years ago next week. How so? Investors who bought in at its IPO watched the stock rise 173% to peak at about $60 last February, only to lose 84% of that value to open January 24 at $9.70 — about 56% below its IPO price. Does One Medical’s loss of stock market value make its shares a buy? Despite some positive aspects to the story — notably a large market and rapid top-line growth, I am siding with those who are betting that its shares will keep going down. (I have no financial interest in the securities mentioned in this post). One Medical’s Big Market Opportunity and Rapid Growth One Medical provides healthcare membership services — including “walk-in immunizations and lab services, behavioral health, women's health, men’s health, … [Read more...] about 1LifeHealthcare Stock Is Plunging. That Does Not Make It Cheap
While some investors are worried about the next market crash, others are taking advantage of this fact: if you have the cash on hand, it's a great time to add more high-conviction stocks to your portfolio right now, and often at discounted valuations. In this segment of Backstage Pass , recorded on Jan. 5 , Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss their top stock picks to buy and hold in 2022 and beyond. Rachel Warren : I don't think any of us can predict where the bottom is. I think we're going to be seeing a lot of ups and downs in the market. You also have a lot more investors that are retail investors that are prone toward more speculative assets now than they had been in times past, and that is also driving some of that volatility. One other question from Vihaan touches about what we're talking before, "Five team, what are three gold stocks from each of you, you would add or take a position in as you see 5% dip … [Read more...] about 4 Investors Pick Their Top Stocks for 2022
What happened Well, it's looking like another miserable day for stock markets on Monday, with the Dow down 1.7% and the tech-heavy Nasdaq off 2.6%. Once again, semiconductor stock Nvidia ( NASDAQ:NVDA ) is leading tech stocks lower as its shares had slumped 6.6% by 10:25 a.m. ET today. The most obvious answer is that investors are favoring "cheap" semiconductor stock Intel ( NASDAQ:INTC ) over "expensive" semiconductor stock Nvidia today, especially because Intel had some good news to report last week. Image source: Getty Images. So what On Friday, Intel announced that it has chosen to locate two new chip factories near Columbus, Ohio, picking the city from a field of 40 locations that had competed for the investment. Construction will commence later this year, and production should start in 2025. And as The Wall Street Journal, reports, the $20 billion that Intel will be investing in Ohio is only part of a $100 billion investment plan for building out … [Read more...] about Why Nvidia Stock Just Crashed 6.6%
Berkshire Hathaway CEO Warren Buffett is one of the most successful value investors of all time. By picking stocks that trade at steep discounts relative to their intrinsic value, Berkshire Hathaway consistently beat the broader market during his lengthy tenure as the company's primary stock picker. Although classic value stocks fell out of favor during the nearly decade-long bull market over the course of 2010 to 2020, and Berkshire's stock underperformed some major U.S. stock indexes as a result, these tried and true investing vehicles are making a furious comeback during this current bear market. The long and short of it is that the increasing likelihood of rising interest rates and stubbornly high levels of inflation ought to favor Buffett's value-oriented approach to investing over narrative-driven growth stocks in 2022. Which Berkshire Hathaway -- or Warren Buffett stocks -- are the best value plays right now? Bank of America ( NYSE:BAC ) and Teva Pharmaceutical … [Read more...] about 2 Best Warren Buffett Value Stocks to Buy Right Now
The higher one climbs, the harder one falls. Such is the fate for stocks that are trading at ridiculously high price-to-earnings ratios. This is especially the case in the context of the ongoing market sell-off, where the S&P 500 has now declined 8.3% from all-time highs. These three companies -- an electric vehicle (EV) maker, a videoconferencing leader, and a struggling biotech -- already have their growth potential maxed out in their stock prices, if not more. Today, let's look at why investors should be in no hurry to buy their dips. Image source: Getty Images. 1. Tesla Nowadays, many investors view Tesla ( NASDAQ:TSLA ) as a revolutionary company at the forefront of innovation in the EV industry. Its financials seem to suggest so as well. In its third-quarter update, the company said its sales increased by 45% compared with last year, to $8.7 billion. As its revenue increased, so did its profits. Tesla's gross margin came in at 23.5% versus … [Read more...] about These 3 Stocks Are Trading at Ludicrous P/E Ratios. Should Investors Avoid Them?
Airbnb ( NASDAQ:ABNB ) went public in Dec. 2020 at $68 per share. The short-term rental provider's stock opened at $146, hit an all-time high of $219.94 last February, then pulled back to the $160s over the past year. Airbnb clearly remains a battleground stock for the bears and the bulls. Let's review both arguments and see which thesis makes more sense. What the bears will say about Airbnb The bears generally don't like Airbnb for four reasons: the competition, the regulatory headwinds, its high valuation, and the pandemic-related threats. Airbnb enjoys an early-mover's advantage in the short-term rental market, but it faces a lot of competition from traditional hotels and online travel agencies (OTAs). In the hotel space, Accor ( FRA:ACR ) bought Airbnb's competitor One Fine Stay in 2016, Marriott ( NASDAQ:MAR ) partnered with the home rental platform Hostmaker in 2019, and other hotel chains are launching cheaper brands to compete against Airbnb. Image … [Read more...] about Airbnb Stock: Bear vs. Bull
The biotech industry is a wild one indeed. It isn't uncommon to see shares of biotech companies double (or more) in just a day or two. That's what happened to BeyondSpring ( NASDAQ:BYSI ) on Aug. 4, when its stock skyrocketed by as much as 211% and ended the day's trading session up 176%. The reason for the gains was the usual suspect in this industry: positive results from a late-stage clinical trial. And while the data was enough to woo a cohort of investors, for those focused on the long term, it pays to take time to look at a company's entire investment thesis before jumping in. Let's dig deeper into this business to figure out whether its shares are worth buying today. "Pipeline in a drug" BeyondSpring is a biotech that focuses on developing cancer treatments. This isn't a bad market to jump into. Cancer drugs generate more sales than any other class of medicines. Further, the field of oncology is one of the fastest-growing in the pharmaceutical industry. Even … [Read more...] about This Biotech Stock Just Skyrocketed by 170%. Is It a Buy?
To cut U.S. greenhouse gas emissions in half within a decade , the Biden administration’s goal, the U.S. is going to need a lot more solar and wind power generation, and lots of cheap energy storage. advertisement advertisement Wind and solar power vary over the course of a day, so energy storage is essential to provide a continuous flow of electricity. But today’s batteries are typically quite small and store enough energy for only a few hours of electricity. To rely more on wind and solar power, the U.S. will need more overnight and longer-term storage as well. While battery innovations get a lot of attention , there’s a simple, proven long-term storage technique that’s been used in the U.S. since the 1920s. It’s called pumped hydro energy storage . It involves pumping water uphill from one reservoir to another at a higher elevation for storage, then, when power is needed, releasing the water to flow downhill through turbines, generating … [Read more...] about Forget batteries. This 100-year-old technique provides cheap energy storage for wind and solar power