Investor concerns have yet to abate, with worries given some added impetus last week when Fed Chair Jerome Powell said bluntly that the central bank is not done raising interest rates – and that the next couple of years are going to hurt. In one way, this is good news, as it signals clearly that the central bank will concentrate on combatting the high inflation that is weighing down the economy, but it also dramatically increases the risk that the Fed’s moves will spark a recession.
The immediate result was a sudden drop in stocks across the board, but the unintended consequence may be new opportunities for investors. With markets pulling back, it may just be time for investors to go bottom fishing.
So, let’s get a look at some stocks that are languishing in the doldrums. Using the TipRanks platform, we’ve pulled up details on three stocks that are down more than 50% so far this year – but that also still boast a Strong Buy rating from the Street’s analysts – and upside potential starting at 80% or better. Let’s take a closer look.
RingCentral (RNG)
We’ll start with RingCentral, a tech firm with a focus on communications-as-a-service. RingCentral offers software packages designed to solve the communications issues common in the modern office environment. The company’s software products allow for phone lines, video calling, screen sharing, call forwarding, and other telecom features all to be routed through the office computer system. The system is also compatible with such popular applications as Google Docs, Salesforce, and Outlook, and can be accessed through desktop, tablet, and smartphone devices.
As can be imagined, RingCentral did well during the lockdown periods of the COVID crisis. Cloud-based office software saw a general surge at that time, and exuberance pushed those stock prices way up. Since then, as businesses have reopened physical locations, these services have receded in importance; they are still useful, and still in demand, but investors have pulled back from them as the office environment has normalized.
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