Source: smshoot/ShutterStock.com Navigating the stock market is a difficult task for the inexperienced. The first step in making a successful trade is understanding how prices work and what they represent. However, one of the best approaches you can take is seeking out high-upside stocks.
It is a value investing approach. A good value investor looks for companies with low prices relative to their intrinsic worth and is willing and able to buy shares when they’re cheap. There is no one-size-fits-all strategy, but intelligent risk management demands caution.
I’m taking a deep dive into high-upside stocks that are looking to break out of this list. But at the same time, all of these companies have solid operating models; these aren’t fly-by-night operations. But a word of caution before moving forward: even the best consensus estimates are just estimates in the end. They can go wrong. It’s very important to make sure the stock that you are interested in actually matches your risk-return profile.
With that in mind, here are seven high-upside stocks to buy: High-Upside Stocks: Occidental Petroleum Corp. (OXY)
Source: bht2000 / Shutterstock.com TipRanks 12-Month Consensus Price Target: $39.21 (17% upside potential)
Occidental Petroleum is a privately owned company that produces and sells crude oil. The stock of this American multinational corporation has been steadily rising over recent decades due largely to increased sales from its operations in Latin America, especially Colombia.
However, the Covid-19 pandemic was devastating for Occidental Petroleum and other companies in the space. The energy company was already dealing with the $57 billion purchase of Anadarko Petroleum. At the purchase, many analysts questioned the wisdom of accepting so much additional debt to finance the purchase. The pandemic added to the company’s miseries. In response, Occidental is disposing of non-core assets to decrease leverage.
But now, things are getting back to normal, and energy prices are on the move. Therefore, OXY stock has all the potential for a comeback. Penn National Gaming (PENN)
Source: Casimiro PT / Shutterstock.com TipRanks 12-Month Consensus Price Target: $95.33 (26% upside potential)
Penn National Gaming operates casinos and racetracks with 44 facilities spread across America and Canada. It also owns a 36% stake in Barstool Sports company.
Over the last decade, the regional land-based casino operator has done very well, a rare outlier the last year. Penn National Gaming’s revenue for 2020 was $3.579 billion. In 2019, annual revenue came in at $5.301 billion, representing a decrease of 32%.
However, things are doing very well in the year thus far. But by investing in Barstool Sports, the company has carved out a niche in mobile sportsbook betting. High-Upside Stocks: Fox Corp. (FOX)
Source: Leonard Zhukovsky / Shutterstock.com TipRanks 12-Month Consensus Price Target: $44.50 (13% upside potential)
Fox Corporation has become one of America’s most successful media companies. They produce and license news programs for distribution through cable television systems as well direct broadcast satellite operators.
With advertiser spending rebounding, things are looking pretty good for FOX. Most recently, the company reported record earnings for the fourth quarter and fiscal 2021 financial results. Revenue grew by 20%.
A rise in advertising revenue was seen across all three segments: television (51%), cable network (17%) and other revenues (30%). With the pandemic slowly receding into the background, things will only get better from this period. According to Executive Chairman and Chief Executive Officer Lachlan Murdoch, “We look forward to the year ahead, anticipating the return of normalized sports and entertainment calendars and the start of the midterm election cycle.” ChargePoint Holdings (CHPT)
Source: Michael Vi / Shutterstock.com TipRanks 12-Month Consensus Price Target: $32.89 (54% upside potential)
ChargePoint operates the largest network of separately owned EV charging stations, active in 14 countries. As the world pivots towards clean energy, companies like ChargePoint stand to benefit immensely. We have already seen President Joe Biden release a comprehensive $2 trillion infrastructure and economic recovery package that has a significant EV component.
To accommodate the expected growth of EVs by 2030, AlixPartners estimates $300 billion is needed to build out global infrastructure, including $50 billion in America, a feat that would take quite some time and effort. But as the Chinese proverb goes, “A journey of a thousand miles begins with a single step.” Under Biden’s infrastructure plan, 500,000 charging devices would be installed in a national EV charging network in America by 2030.Against this backdrop, ChargePoint, an industry leader, becomes an enticing prospect for any portfolio. Most recently, analysts expected the company to narrow losses to 12 cents apiece. But ChargePoint reported a second-quarter loss of 13 cents. However, sales finished […]
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