Ready to go bottom fishing again? Any good angler can tell you that there’s plenty of good eating just waiting at the bottom of the creek, or the pond, or the lake. The same concept also holds for stocks – investors can always find some quality equities down at the market bottoms.
Stocks get down there for a multitude of reasons, and the reasons aren’t always related to any fundamental flaw in the company or its share trading policies. Sometimes, it’s some idiosyncratic business move, or over-reaction to a related news item, or even just the bad luck of getting swept up in a general market downturn.
So, how are investors supposed to distinguish between the names poised to get back on their feet and those set to remain down in the dumps? That’s what the pros on Wall Street are here for.
Using TipRanks’ platform, we pinpointed two beaten-down stocks the analysts believe are gearing up for a rebound. Despite the hefty losses incurred in 2022, the two tickers have scored enough praise from the Street to earn a “Strong Buy” consensus rating.
Synaptics, Inc. (SYNA)
The first company we’ll look at, Synaptics, lives where man meets machine. This company develops the tech that makes our high-end computer interfaces work. Synaptics’ product line includes wireless connectivity, video interface ICs, graphic chips, audio DSPs, multimedia processors, touch pad modules, fingerprint sensors, touch controllers, and more. Synaptics has also developed its proprietary Katana platform, an ultra-low power AI that act autonomously on data from audio and visual sensors.
There’s no shortage of demand for computer systems – or for their interfaces, which has been a boon for Synaptics’ business in the past few years. The company’s revenues and earnings grew slowly but steadily through 2021 and into 2022, with the most recent quarterly results, for Q4 of fiscal year 2022 hitting the highest levels of the past eight quarters. The top line reached $476.4 million, up 45% year-over-year. The revenue gain was driven by a robust 87% y/y increase in IoT sales.