Successful market investing is all about finding opportunities, and buying into the right stocks at low prices. The only real trick to navigating the market is recognizing those opportunities, since low prices is a relative concept, not an absolute. A low price for a famously expensive stock like Amazon will still be in the thousands, while a low price for an obscure penny stock may be less than one dollar.
A look at stock charts will help to find companies whose shares are trading at a discount. Its a recognized strategy, and every investor knows about buying the dip and using a current low in a stocks trading price as a point of entry.
With this in mind, we scoured the TipRanks database and picked out 2 names which have been pinpointed by those in the know as representing a buying opportunity. Both are trading at relative low prices, and that comes with substantial upside potential. Let's take a closer look.
Opportunity Financial (OPFI)
Lets start in the fintech sector, where Opportunity Financial, or OppFi, provides a credit access platform for consumer use. Customers can download the app to their smartphone, and access credit through a completely digital process, with fast applications, fair and transparent decisions, and quality customer service. Among the services offered are loans and payroll-linked credit.
OppFi bases its business model on the large population estimated at 60 million of consumers who have difficulty accessing traditional sources of credit. These are people with regular work, but minimal savings and occasional financial emergencies that tap what resources they do have. OppFis target customer has an annual income less than $50K.
The need for credit in OppFis target population is apparent from the companys growth numbers. OppFi reported an 84% year-over-year growth in net originations during Q2, and a 28% yoy gain in revenue. It was a solid performance for a company that only went public this past July.
Story continues
That move to the public markets was accomplished via a SPAC merger. OppFi entered into a business combination with FG New America Acquisition, a special purpose acquisition company, and the OPFI ticker started trading on July 21. Since then, however, the shares have dropped by 22%.
That drop opens up the opportunity for investors, according to D.A. Davidson analyst Christopher Brendler.
With the stock reaching a new low [concurrent with] encouraging 2Q results, we see a compelling buying opportunity as the stock is now ridiculously cheap. We project OppFi to grow revenue 112% and EPS 98% (2020A-2022E) yet the stock now trades under 10x 2022E EPS, Brendler opined.
In line with this view, Brendler rates OPFI shares a Buy, along with a $14 price target. Investors could be sitting on gains of ~72%, should Brendlers forecast play out over the coming months. (To watch Brendlers track record, click here)
This newly public stock has attracted some positive attention from Wall Street, with 3 Buy recommendations giving it a unanimous Strong Buy consensus rating. The shares are trading for $8.10, and their $13.83 average price target implies ~70% upside potential for the coming year. (See OPFI stock analysis on TipRanks)
Scorpio Tanker (STNG)
Now lets shift gears, and enter the world of international shipping. Scorpio Tanker is a shipping company in the oil and petrochemical business, operating a fleet of ocean-going tanker vessels in the Handymax, MR, and LR1 and LR2 size ranges. The MR and LR ships are commonly used general purpose oil tankers, and will carry both crude oil and refined products. They are capable of operating in most ports around the world but Scorpio also operates a large number of smaller Handymax vessels, giving it access to small ports as well.
The economic reopening, and the resumption of much trade, was positive for Scorpio, as investors turned bullish on shipping generally with the resumption of the global carrying trade. The company saw its share price rise steadily through the first half of this year, peaking in late June. Since then, the stock has pulled back by 38%.
That pullback has come as Scorpio reported a difficult second quarter. The company saw a net EPS loss of 97 cents, compared to the per-share profit of $2.40 reported in the year-ago quarter. Revenue came in at $139.4 million, down from $346.2 million in 2Q20. The losses, and the fall in revenue, reflect a lag inherent in shipping and supply chains; that is, orders placed dont get sent out immediately. It is one reason why, even though economies are reopening, the shipping industry is facing headwinds.
H.C. Wainwright analyst Magnus Fyhr remains unfazed, and notes that the tanker company is in a sound position to take advantage of an improving shipping environment later this year.
"...we believe a global economic recovery and rising vaccination rates should increase mobility levels and support stronger global oil demand in 2H21. In fact, following two months of decline, oil demand surged by an estimated 3.2 mb/d to 96.8 mb/d in June, with 2H21 on course to rise 4.6 mb/d versus 1H21 levels, to 98.7 mb/d," Fyhr noted.
The analyst continued, "With product tanker fundamentals starting to improve, we believe asset values should continue to strengthen and that an improving liquidity position should address any balance-sheet concerns. As a result, we continue to like STNG as a product tanker pure play and believe the recent pullback has created an attractive buying opportunity."
Based on the above, Fyhr rates STNG shares a Buy, and his $28 price target implies an upside of ~89% this year. (To watch Fyhrs track record, click here)
As for the rest of the Street, STNG has been assigned 5 Buys, 1 Hold and 2 Sells. This translates to a Moderate Buy consensus rating. The average price target lands at $21.88, and represents upside potential of ~47%. (See STNG stock analysis on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
See the article here:
The Dip in These 2 Stocks Is a Buying Opportunity, Say Analysts - Yahoo Finance
- NBA playoffs: Bucks G Patrick Beverley chucks ball at multiple Pacers fans amid elimination - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- Britney Spears says she feels 'harassed' after paramedics respond to incident at Chateau Marmont: The latest - Yahoo Entertainment - May 3rd, 2024 [May 3rd, 2024]
- How the Knicks' special chemistry helped them turn back the 76ers - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- 11 stocks that mattered most this earnings season - Yahoo Finance - May 3rd, 2024 [May 3rd, 2024]
- Fed holds interest rates at 23-year high, citing 'lack of further progress' on inflation - Yahoo Finance - May 3rd, 2024 [May 3rd, 2024]
- Odell Beckham Jr. reportedly signing 1-year, $8.25 million deal to join Dolphins - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- How to watch the 2024 Kentucky Derby: Post positions, odds, where to stream and more - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- The Buzz: What would a fantasy baseball draft look like today? - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- 2nd Boeing whistleblower found dead. Here's a timeline of the company's mounting problems. - Yahoo! Voices - May 3rd, 2024 [May 3rd, 2024]
- Trump trial live updates: Hope Hicks called to the stand as testimony resumes in hush money case - Yahoo! Voices - May 3rd, 2024 [May 3rd, 2024]
- Brandon Aubrey thinks soccer background will "absolutely" help with new kickoffs - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- Kentucky Derby: Fierceness' odds keep shrinking ahead of the 150th race - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- How to watch the 2024 WNBA preseason tonight: Caitlin Clark's first Indiana Fever game time, channel and more - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- Amazon Web Services CEO: We're on track to hit $100 billion in sales in 2024 - Yahoo Finance - May 3rd, 2024 [May 3rd, 2024]
- NFL Power Rankings, draft edition: Did Patriots fix their offensive issues? - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- Lynch reveals how he engaged Shanahan on 49ers GM job - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- Drake, Adele, and others are following Taylor Swift back onto TikTok after Universal deal - Yahoo Finance - May 3rd, 2024 [May 3rd, 2024]
- Boss Orders Employee 'Be Prepared To Cancel Or Reschedule Your Wedding' After Layoffs, Despite Her Giving A ... - Yahoo Finance - May 3rd, 2024 [May 3rd, 2024]
- May Reliever Rankings - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- Kyle Hendricks pelted by a line drive during Double-A start - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- China publicizes for the first time what it claims is a 2016 agreement with Philippines - Yahoo! Voices - May 3rd, 2024 [May 3rd, 2024]
- What Pearsall believes Green will bring to 49ers defense - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- What to know about Rickwood Field ahead of Giants-Cardinals game - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- Biden says Americans have 'right to protest but not the right to cause chaos' on college campuses after another night of ... - Yahoo! Voices - May 3rd, 2024 [May 3rd, 2024]
- Billam-Smith 'motivated to avenge loss' to Riakporhe - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- Chinese Grand Prix 2024: How to watch tonight's F1 race without cable - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- Was it legal for Kristi Noem to shoot her puppy and what other options did she have? - Yahoo! Voices - May 3rd, 2024 [May 3rd, 2024]
- Apple unveils record $110 billion buyback as results beat low expectations - Yahoo Finance - May 3rd, 2024 [May 3rd, 2024]
- Paramount has spent a decade as the source of buyout rumors. That might finally come to an end. - Yahoo Finance - May 3rd, 2024 [May 3rd, 2024]
- Lynch reveals hilarious truth about transition from player to GM - Yahoo Sports - May 3rd, 2024 [May 3rd, 2024]
- 7 Social Security Shakeups You Need To Be Ready For Heading Into the New Year - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- Crypto had a surprisingly great year. It still faces threats in 2024. - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- 'How the hell does that even happen?' McCarthy exits Congress amid confusion over who can run to replace him - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- Short sellers lost close to $178 billion in 2023 - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- Trump legal news brief: Giuliani files for bankruptcy after judge rules he must immediately pay $148 million for election ... - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- No One Wants Used EVs, Making New Ones a Tougher Sell Too - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- Israel's military campaign in Gaza seen as among the most destructive in recent history, experts say - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- Barbara Corcoran Says Housing Prices 'Are Going To Go Through the Roof' But When? - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- Are You Wealthy? The Net Worth You Need To Be Considered Poor, Middle-Class And Wealthy In America - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- German bishop Btzing criticizes pope over Ukraine and Israel stance - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- 'Severe revenue decline': California faces a record $68 billion deficit here's what is eating away at the Golden State's ... - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- Poll: Trump is tied with Biden for now but criminal trials and unpopular plans pose risks for 2024 - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- Rudy Giuliani files for bankruptcy days after being ordered to pay $148 million in defamation case - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- 'It's just bragging rights': Once you achieve this credit score there's 'no benefit' to scoring higher, expert says here are ... - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- Records released by House Republicans show that Joe Biden repeatedly emailed Hunter Biden's business associate ... - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- Tesla Getting Trounced by S&P 500 Three Years After Joining - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- Ukrainian forces shoot down three Russian Su-34 fighter jets on southern front - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- The only AI 'regulation' coming is from workers - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- Innocent Black Man Spent 50 Years in Prison, His Compensation Will Annoy The Hell out of You - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- Texas begins flying migrants from southern border to Chicago. The 1st plane carried over 120 people - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- Donald Trump Is Running Scared - Yahoo News - December 22nd, 2023 [December 22nd, 2023]
- The biggest 2024 threat to Big Tech is coming from both sides of the Atlantic - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- Apple halts online sales of its Apple Watch Series 9 and Apple Watch Ultra 2 - Yahoo Finance - December 22nd, 2023 [December 22nd, 2023]
- 2023 FIBA World Cup: Jaren Jackson Jr.'s elite rim protection and defensive presence come with a price - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- Fantasy Football Rankings: These are the hardest players to ... - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- Cowboys QB Dak Prescott feels for Will Grier after Trey Lance deal, not worried about future in Dallas - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- Massive alligator captured in Mississippi is a new state record. Nightmare material - Yahoo! Voices - August 28th, 2023 [August 28th, 2023]
- Virginia Gov. Youngkin eyes a 15-week abortion ban as a 'consensus' voters would back - Yahoo News - August 28th, 2023 [August 28th, 2023]
- Poll: Trump could be in big trouble for 2024 if convicted of crimes - Yahoo News - August 28th, 2023 [August 28th, 2023]
- 'She-Hulk' star Tatiana Maslany nearly brought to tears after overcoming fears of heights and cold with the help of Bear Grylls - Yahoo Entertainment - August 28th, 2023 [August 28th, 2023]
- Don't feel guilty about being lazy. Experts say there are some health benefits. - Yahoo Life - August 28th, 2023 [August 28th, 2023]
- Center Paolo Banchero helps Team USA power past physical New Zealand in FIBA World Cup - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- Tyreek Hill says Tua's response to ESPN criticism 'fires me up,' shows Dolphins something they've never seen - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- USA's Katie Moon, Australia's Nina Kennedy agree to share pole vault gold after tie atop World Athletics Championships - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- Blue Jays' Bo Bichette, Matt Chapman leave game vs. Guardians with injuries - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- Benches clear twice as Rays roll past Yankees 7-4: 'It's a last-place team' - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- All-Pro Chris Jones says hes willing to extend Chiefs holdout through Week 8 - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- Fyre Festival II: Andy King confirms he's working with Billy McFarland for 'redemption'; 1st drop sells out - Yahoo Entertainment - August 28th, 2023 [August 28th, 2023]
- Pirates first overall pick Paul Skenes doesn't make it out of 1st inning in Double-A debut - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- U.S. men and women sweep gold in 4x100m relay at World Championships - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- Spain soccer president Luis Rubiales apologizes for kissing player, as calls for his resignation mount - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- COVID cases are rising. What are schools doing about it? - Yahoo Life - August 28th, 2023 [August 28th, 2023]
- Nicolas Batum ashamed and scared to go home after France is knocked out of FIBA World Cup - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- Tour Championship: How much did Viktor Hovland, others earn at East Lake? - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- The Daily Sweat: Cubs get chance to cut into streaking Brewers' NL Central lead - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- NASCAR: Chris Buescher wins at Daytona after Ryan Preece's car flips at least 10 times in terrifying crash - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- With college sports more in flux than ever before, new players association group emerges - Yahoo Sports - August 28th, 2023 [August 28th, 2023]
- NFL Hall of Fame Game: How to watch the 2023 NFL preseason opener - Yahoo Sports - July 31st, 2023 [July 31st, 2023]
- 2023 NFL preseason: How to watch, full schedule, streaming info and more - Yahoo Sports - July 31st, 2023 [July 31st, 2023]
- Reports: Colts considering placing Jonathan Taylor on NFI list, which could negate his 2023 salary - Yahoo Sports - July 31st, 2023 [July 31st, 2023]