8 Stocks That Are on Sale Right Now

Posted on Monday, October 22nd, 2018 by Chris Markoch
8 Stocks That Are on Sale Right NowOctober has lived up to its reputation as being one of the most volatile for equity investors. In addition to being a month historically known for profit taking, there is a confluence of events that are challenging stock prices. The tariff conflict continues to hang over the market, leaving investors to wonder how it will affect U.S. businesses doing business in China, and what will happen to the U.S. economy if consumers have to adjust to higher prices on imports. The market is also digesting higher interest rates, the consequences to businesses as they digest an economy that is reaching full employment and shrinking margins.

The phrase “perfect storm” can often be overused, but in October 2018, it may be the most apt description. The good news for investors is that after every time the market goes through these correction periods, there are exceptional buying opportunities – and many times the highest gains go to the investors who prudently buy during the dips. Think of it like buying next year’s holiday decorations on December 26. When investors buy stocks that are on sale, they can get both value and growth.

The same is true right now. It may not be the time to dive into the market with both feet, but there are buying opportunities. In this presentation, we're giving you eight stocks that are selling at a discount, but still, show the fundamentals to be great buying opportunities as we approach the fourth quarter earnings season.

#1 - Netflix (NASDAQ:NFLX)

Netflix logo

Netflix (NASDAQ: NFLX) - There is a psychology to many selloffs, and Netflix seems to fit into that pattern very well. The streaming content provider’s stock has dropped nearly 20% since mid-July. While some analysts may have had the stock overvalued, it’s fair to ask if the selloff has gone too far. Here’s why. For starters, Netflix seems to be taking a hit for wanting to be accurate. In three out of their last 10 quarters, the company has overestimated their membership growth. But they are still increasing membership, and a closer look shows that their membership growth in the first half of 2018 was significantly ahead of that from 2017. And the larger question is the story for Netflix is not about granular growth as measured quarter by quarter, it’s about how fast the company is growing. That is a story that shows a 40% year-over-year revenue increase and a 25% growth in streaming subscribers. Some analysts are projecting Netflix’s earnings per share (EPS) to grow by 60% per year for the next five years. All of those metrics don’t take into account their international growth. Membership worldwide has risen 40% year over year with revenue increasing by 65% over the same period. And Netflix has demonstrated an ability to raise their current prices while continuing to add new subscribers.

About Netflix
Netflix, Inc operates as a streaming entertainment service company. The firm provides subscription service streaming movies and television episodes over the Internet and sending DVDs by mail. It operates through the following segments: Domestic Streaming, International Streaming and Domestic DVD. The Domestic Streaming segment derives revenues from monthly membership fees for services consisting of streaming content to its members in the United States.Read More 

Current Price: $518.91
Consensus Rating: Buy
Ratings Breakdown: 27 Buy Ratings, 6 Hold Ratings, 3 Sell Ratings.
Consensus Price Target: $611.12 (17.8% Upside)



#2 - Facebook (NASDAQ:FB)

Facebook logo

Facebook (NASDAQ: FB) - Of all the FAANG stocks, Facebook may be the one that would seem to offer the least likely growth opportunity. There have been privacy concern issues, for sure. But for a stock that generates over 40 cents of every dollar into free cash, it seems analysts may want to take a second look. After all, Facebook bought back $5.1 billion of their shares in the first half of 2018 and it’s likely that they’ll buy back the same amount, or more, in the second half. Anytime a company is buying back its own shares, they believe that their stock is undervalued. And with Facebook, there’s reason to believe that story is true. And a big reason for that is Instagram, which Facebook owns. According to estimates, approximately 15% of the company's advertising revenue came from Instagram, which represents about $6 billion of the company's $40.7 billion top-line number for 2017. As Instagram’s ad revenue continues to increase in 2018, one analyst projects that Instagram’s ad revenue could account for 33% of Facebook’s overall advertising revenue by 2020. Which brings us back to the free cash flow (FCF) story, and that's the real game-changer for Facebook. The stock is currently trading at approximately 26 times its free cash flow. Even without a higher share price for two years, the anticipated free cash flow would have the company trading at 19 times FCF. That would be an awfully tasty number for investors.

About Facebook
Facebook, Inc develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide. The company's products include Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing photos, videos, and private messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application that is used by people and businesses to communicate in a private way.Read More 

Current Price: $367.81
Consensus Rating: Buy
Ratings Breakdown: 34 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $380.63 (3.5% Upside)



#3 - Alphabet Inc. (NASDAQ:GOOGL)

Alphabet logo

Alphabet Inc. (NASDAQ: GOOGL) - It almost seems absurd to put a company that’s trading at over $1,100 per share at this writing as being “on sale”. But that doesn’t change the fact that Alphabet, which is the parent company of Google is down from highs over $1,200 in early July. Unlike Facebook, there is no lack of transparency about where Alphabet’s revenue comes from. Google generates 86% of its revenue from advertising. Its Google Ad Words is the de facto standard for businesses that are becoming more dependent on digital media for their advertising spend. Google is still considered the industry’s leading search engine and they continue to see growth through YouTube. Google is also getting set to launch three new products (their Pixel 3 Smartphone, Pixel Slate tablet, and Home Hub device) that may allow the company to generate even more revenue. The company does face some headwinds related to their stated desire to push ahead with developing a censored search engine for China. The very fact that the company remains so committed to the project, even while there remains no guarantee that such a search engine would ever launch, speaks to the impact that expanding into the Chinese market would offer Google as they strive to become more competitive in other markets.

About Alphabet
Alphabet, Inc is a holding company, which engages in the business of acquisition and operation of different companies. It operates through the Google and Other Bets segments. The Google segment includes its main Internet products such as ads, Android, Chrome, hardware, Google Cloud, Google Maps, Google Play, Search, and YouTube.Read More 

Current Price: $2,638.00
Consensus Rating: Buy
Ratings Breakdown: 42 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $2,536.95 (3.8% Downside)



#4 - Adobe (NASDAQ:ADBE)

Adobe logo

Adobe (NASDAQ: ADBE) - Yet another technology stock that merits a closer look despite the recent selloff is Adobe. The undisputed leader in cloud space technology is primed to benefit from an industry that is forecasting demand for cloud services to grow over the next 2-3 years. In their most recent earnings guidance, the company forecast 20% growth for its 2019 overall sales and digital media revenue. Unlike the FAANG stocks, Adobe made it through the tech sell-off in July relatively unscathed and the stock has continued to rise. In fact, some analysts have taken note of how Adobe has continued to rise in a sector where many companies have not. This is why many analysts are bullish on the stock’s prospects going forward and why, even with their stock trading at a record level right now, the best may be yet to come, which would make their current price seem like a bargain. Not only does the company pass the smell test from a fundamental analysis viewpoint, but the technical indicators look great as well. Their stock chart for 2018 shows rhythmic, symmetrical support and a stock price that has risen to new heights off support levels.

About Adobe
Adobe, Inc engages in the provision of digital marketing and media solutions. It operates through the following segments: Digital Media, Digital Experience, and Publishing. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Light room and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat.Read More 

Current Price: $618.28
Consensus Rating: Buy
Ratings Breakdown: 22 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $606.08 (2.0% Downside)



#5 - Delta Air Lines (NYSE:DAL)

Delta Air Lines logo

Delta Air Lines (NYSE: DAL) - Airline stocks are always somewhat hard to forecast, but after a share price that dropped below $50 per share and still continues to trade about 10% off its year-to-date high near $60, it may be time for a closer look. One of the issues suppressing the stock, along with investor patience, is fuel prices. As crude oil prices continue to increase, investors have some reason to question whether or not the stock will grow. As a result, despite Delta’s optimistic projection of a significant increase in revenue per available seat mile (RASM) for the third quarter, some analysts are more concerned about the bigger picture for the stock. With higher fuel costs, at least in the short term, Delta will be hard pressed to meet its goal of a flat pre-tax margin (it had been negative). However, with a recently renovated fleet and the company's ability to keep non-fuel costs in line, investors who have the patience to ride this stock out until oil prices level out, or start to decline, may be rewarded with a stock that is looking to be selling at a nice discount.

About Delta Air Lines
Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, London-Heathrow, Mexico City, Paris-Charles de Gaulle, and Seoul-Incheon.Read More 

Current Price: $40.96
Consensus Rating: Buy
Ratings Breakdown: 13 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $50.95 (24.4% Upside)



#6 - Federal Express (NYSE:FDX)

FedEx logo

Federal Express (NYSE: FDX) - Federal Express seems to be an example of how you can always find something negative if you look closely enough. And analysts certainly seem to be doing just that. The stock has been steadily tumbling since reaching a high of around $275 in January. Before the recent sell-off, it was still trading around $250. Now, it's around $220 despite solid earnings. One of the reasons for this is the company's admission that the continuing trade conflict with China is hurting their business. But that alone shouldn't explain the precipitous drop. The company took the rather unique approach of saying that in future conference calls, they would stop reviewing individual sectors and focus on the company as a whole. Market analysts seem to be approaching this upcoming lack of information with the same disdain the media has to a Bill Belichick post-game press conference. The biggest challenge for FedEx going forward is a negative free cash flow and an aging infrastructure that will be a drag on profits and potentially allow Amazon to encroach on this space.

About FedEx
FedEx Corp. is a holding company, which engages in the provision of a portfolio of transportation, e-commerce, and business services. It operates through the following segments: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services, and Corporate, Other, and Eliminations. The FedEx Express segment consists of domestic and international shipping services for delivery of packages and freight.Read More 

Current Price: $282.63
Consensus Rating: Buy
Ratings Breakdown: 22 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $342.33 (21.1% Upside)



#7 - Freeport-McMoRan (NYSE:FCX)

Freeport-McMoRan logo

Freeport-McMoRan (NYSE: FCX) - Freeport-McMoRan is garnering a lot of attention from investors. One of the reasons for this is what seems to be a resolution for a deal surrounding its flagship mining property in Indonesia. That and the fact that CEO, Richard Adkerson, has announced a willingness to sell the company. That will always raise eyeballs. However, while that looks unlikely at this time, one thing that looks positive for the company is their fundamentals. All in all, with a market capitalization of around $17.7 billion, the company appears to be largely undervalued, and a look inside the numbers shows that the stock might be poised for a lift. The company’s most recent earnings report showed a healthy balance sheet with debt on the decline and a positive free cash flow of $827 million. The company also showed a slight increase in year-over-year earnings and sales and shareholders were able to retain $1.46 billion (or $0.60 per share). In the next fiscal year, the company is forecasting total earnings per share that would justify a stock price around $15.07 per share, well above where it is currently trading around $12 per share.

 

About Freeport-McMoRan
Freeport-McMoRan Inc engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile.Read More 

Current Price: $36.35
Consensus Rating: Buy
Ratings Breakdown: 9 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $38.06 (4.7% Upside)



#8 - General Electric (NYSE:GE)

General Electric logo

General Electric (NYSE: GE) - When you've hit the bottom, there's nowhere to go but up, right? That might be the cynical argument for buying General Electric. However, there is a brighter story. Their new CEO, Lawrence Culp, successfully turned around the industrial company Danaher and will bring the principles of the Toyota Production System (TPS) to General Electric. Can analytics make a difference? The company is betting on it and with good reason. GE has been trying, unsuccessfully to divest itself of their underperforming business units while identifying and growing their profitable ones. That is where Culp succeeded at Danaher and the thought is he can achieve similar success to GE. With a stock price currently around $12 a share, the stock has actually climbed around 13% since Culp was named to the position. While the stock may not be for the faint of heart, there does seem to be evidence of a bright future for GE shares.

About General Electric
General Electric Co engages in the provision of technology and financial services. It operates through the following segments: Power, Renewable Energy, Aviation, Healthcare, and Capital. The Power segment offers technologies, solutions, and services related to energy production, which includes gas and steam turbines, generators, and power generation services.Read More 

Current Price: $13.08
Consensus Rating: Buy
Ratings Breakdown: 8 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $14.46 (10.6% Upside)

 

Corrections are a part of every market, even a bull market like the one that investors are currently enjoying. During these times, there is always profit potential, because frequently corrections provide the opportunity for investors to buy great stocks while they’re on sale. This latest correction is no different. From tech stocks to manufacturing, there are some appealing stocks with great brand names that are now offering investors a chance to swoop in and add to their portfolio at attractive prices.

Just as October is a notoriously painful month for stock, the run-up to the Holiday season is typically a time when the market experiences some of its greatest gains. But as the saying goes, you can’t win if you don’t get in the game. These eight stocks look to be screaming “Sale” right now, making them strong options for you to consider in your portfolio.

15 REITS Analysts Can't Stop Recommending

There are more than 200 publicly-traded real-estate investment trusts (REITs) that you can buy through your brokerage account. Given the sheer number of REITs, it can be hard to identify which real-estate stocks are going to outperform the market.

Fortunately, Wall Street's brightest minds have already done this for us. Every year, analysts issue approximately 4,000 distinct recommendations for REITs. Analysts don't always get their "buy" ratings right, but it's worth taking a hard look when several analysts from different brokerages and research firms are giving "strong buy" and "buy" ratings to the same REIT.

This slide show lists the 15 REITs that have the highest average analyst recommendations from Wall Street's equities research analysts over the last 12 months.

View the "15 REITS Analysts Can't Stop Recommending" Here.





MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.