Buy cheap? Even in the stock market, buyers like to find a bargain. Defining a bargain, however, can be tricky. There’s a stigma that gets attached to low stock prices, based on the reality that most stocks don’t fall without a reason. And those reasons are usually rooted in some facet of poor company performance.
But not always, and that’s why finding stock bargains can be tricky. There are plenty of low-priced equities out there with sound fundamentals and solid future prospects, and these options make it possible for investors to ‘buy low and sell high.’ These are the stocks that Warren Buffett had in mind when he said, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
Using TipRanks’ database, we identified three stocks that feature both low prices now – and powerful upside potential for the coming year. Not to mention each one gets a “Strong Buy” consensus rating from the analyst community. Let’s dive in and find out what’s driving that prospect.
MYT Netherlands (MYTE)
We’ll start with a European holding company, MYT Netherlands, whose subsidiary Mytheresa is a leading e-commerce retailer based in Germany. The online store offers a wide range of products in ready-to-wear clothing, for women, men, and children, along with shoes and accessories. Mytheresa has a focus on luxury goods, and buyers can find high-brands like Gucci, Veneta, Burberry, Dolce & Gabbana… it’s a long list. MYTE went public in New York in January of last year, and in its first fiscal year as a public company, 2021, saw more than €612 million (US$694 million) in total net sales.
In its first four publicly reported quarters, Mytheresa’s revenues stayed in a narrow range, between $186 million and $198 million. Earnings have been more volatile, ranging from 6 cents to 24 cents per share. The most recent bottom line number, 11 cents per share in Q1 of fiscal year 2022, was up 10% sequentially, and a sharp turnaround from the year-ago quarter’s net loss of 10 cents.
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