Despite brief periods of respite, the markets have mostly trended south in 2022, with the NASDAQ’s 28% year-to-date loss the most acute of all the main indexes.
So, where to look for the next investing opportunity in such a difficult environment? One way is to follow in the footsteps of the corporate insiders. If those in the know are picking up shares of the companies they manage, it indicates they believe they might be undervalued and poised to push higher.
To keep the field level, the Federal regulators require that the insiders regularly publish their trades; the TipRanks Insiders’ Hot Stocks tool makes it possible to quickly find and track those trades.
Using the tool we’ve homed in on 3 stocks C-suite members have just been loading up on – ones that have retreated over 40% this year. Let’s see why they think these names are worth a punt right now.
First out of the gates, we have Carvana, an online used car retailer known for its multi-story car vending machines. The company’s ecommerce platform provides users with a simple way to search for vehicles to purchase or get a price quote for a vehicle they might want to sell. Carvana also offers add-on services such as vehicle financing and insurance to customers. The company operates by a vertically integrated model – that is, it includes everything from customer service, owned and operated inspection and reconditioning centers (IRCs), and vehicle transportation via its logistics platform.
Carvana has been growing at a fast pace over the past few years, but it’s no secret the auto industry has been severely impacted by supply chain snags and a rising interest rate environment.
These macro developments – along with a rise in high used-vehicle prices and some more company-specific logistics issues – resulted in the company dialing in a disappointing Q1 earnings report.
Although revenue increased year-over-year by 56% to $3.5 billion, the net loss deepened significantly. The figure came in at -$506 million compared to 1Q21’s $82 million loss, resulting in EPS of -$2.89, which badly…