Now that we’re into the second half of 2022, with the Independence Day holiday behind us, we can take stock of the changes that the last six months have brought. And those changes have been dramatic. As this year got started, the S&P 500 was coming off of a 27% annual gain. Today, the index is down 20%, putting it into a bear market.
The losses have been broad-based, and have left many otherwise sound equities languishing at low prices. It’s a circumstance that has a lot of unhappy investors wondering what the options are – but it has also opened opportunities for anyone willing to shoulder some added risk in a difficult investing environment.
With this in mind, we’ve used the TipRanks database to pinpoint three stocks that have shown hefty losses this year, on the order of 50% to 75%, but each also features a Strong Buy analyst consensus rating and a powerful upside potential. Let’s take a deeper dive in.
PLBY Group (PLBY)
The first stock, the PLBY Group, defines itself, without irony, as a ‘pleasure and leisure’ company. Founded by Hugh Hefner in 1953, the PLBY Group owns Playboy, one of the world’s most distinctive and recognizable brands. While the magazine is the company’s most immediately recognizable product, Playboy also boasts over 1 million active digital customers, more than 50 million global social media fans, and activities in over 180 countries. The company’s products include style and apparel, gaming and lifestyle, and beauty and grooming products.
The company’s strong brand supports its growing revenue stream. Playboy reported 63% year-over-year revenue growth in its recent 1Q22 report, with $69.4 million at the top line. This was driven by a 125% increase in direct-to-consumer revenue, which hit $49.6 million. At the bottom line, the company reported a 12 cent profit per share, a sharp turnaround from the 15-cent per-share loss reported in 1Q21.
Despite solid results, PLBY saw its shares fall 76% since the start of the year. In the last 12 months, the company has been making moves to expand, acquiring new subsidiaries and moving…