After the annus horribilis of 2022, with the final quarter now in play, investors will be hoping a late-year rally will materialize. According to Carson Group’s chief market strategist Ryan Detrick, that’s not such a far-fetched idea.
“While October has a reputation for crashes, it is really a bear market killer,” Detrick recently wrote. “Of the past 17 bear (or near bear markets), stocks bottomed in October six times. Could it happen again? With sentiment this pessimistic and extremely positive seasonals right around the corner, we’d be open to it.”
Sentiment is indeed low. Bearish sentiment – according to the end of September’s American Association of Individual Investors Sentiment Survey – is at 60.8%, near record high levels. This is a bit of a contrarian indicator; historically, when sentiment has been at its lowest, it often suggests the bottom is in sight.
So, with a rebound potentially in the cards, let’s take a look at three names which could be in line for a well-deserved bounce, at least according to some Street analysts. These are stocks which have retreated significantly this year, with all down by 60% or more. Yet, according to TipRanks’ database, each also features a Strong Buy analyst consensus rating and a powerful upside potential.
Cyxtera Technologies (CYXT)
The digital era has brought with it huge amounts of data which must be stored somewhere, and this in turn has led to a surge in global demand for data centers. This is where Cyxtera Technologies enters the frame. The company is a big player in data center colocation and interconnection services; Cyxtera boasts 60 data centers which are spread across 30 markets, with over 2,300 private enterprise and public sector customers making use of its services.
Cyxtera is relatively new to the stock market, having gone public via the SPAC route in July 2021. That’s an unfortunate bit of timing as anyone who has been following the fate of SPACs over the last year and a half or so will know. SPACs have had a miserable time and so have CYXT shares; they are down 76% on a year-to-date basis, a…