As the market slowly recovers, it’s time to go bottom-fishing.
We’re finding some of the most valuable, beaten-down opportunities that none of us should really overlook. In fact, here are two of our favorites.
Apple Inc. (NASDAQ:AAPL) really needs no introduction.
It’s not often that we’ll recommend a stock at $162 a share. This time, we are making an exception because it’s aggressively oversold at bottom of trend with improving fundamentals. Plus, with the trade war likely to cool off near-term, Apple will benefit from that, too. Better yet, major analysts are now saying, “The bad news is over” for the stock.
For example, according to CNBC, Morgan Stanley’s Katy Huberty’s post earnings take was titled, “Reasons to be bullish.” She noted that, “Importantly, Apple made investors feel better about several recent debates – 1) weaker iPhone demand, 2) gross margin risk, and 3) Services growth deceleration, which we address below in more detail..
UBS analyst Tim Arcuri increased his price target to $185 from $180, and said, “we think the worse of the bad news is over for a while…”
Technically, the stock is aggressively oversold at bottom of trend. What we’d like to see here is a potential reversal to at least $185, near-term.
Activision Blizzard Inc. (NASDAQ:ATVI) develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. The company develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offers downloadable content.
ATVI has had a rough outing over the last few months on soft sales. However, there are two key reasons to like the stock here.
One, while we wait on the ATVI recovery, we can paid to wait. The company pays a current dividend yield of 0.71%. The best part – the company has a history of raising its dividend every year. Also, the stock is trading at its lowest valuation in years, despite an outlook for growth in earnings that are set to be double digits each year.
Technically, it’s now consolidating at bottom of trend and remains aggressively oversold.