Ordinarily, you’ll want to avoid excessively red-stained ideas. Although certain exceptions might be made for these oversold stocks ready for rebound. Certain relevant enterprises may be liable to bounce back after bearish actions have gone too far.
Whether you want to call them dead-cat bounces or snapback rallies, the principle is the same. After incurring long bouts of negativity, market participants might see value shift to the other side of the equation. Nothing stays perfectly linear forever, which undergirds the motivation behind speculating on oversold stocks ready for rebound.
Of course, it can’t be ignored that these ideas attracted the bears for a reason in the first place. But like anything, too much of a good (or bad) thing can spark a response. We’re here to speculate on the bounce-back effect. With that, below are oversold stocks ready for rebound.
Gilead Sciences (GILD)
One of the world’s top biopharmaceutical companies, Gilead Sciences (NASDAQ:GILD) focuses on researching and developing antiviral drugs. It’s well known for developing solutions for HIV/AIDs along with hepatitis B and C. It also dove into the Covid-19 therapeutic race. Despite its relevancies, the market is having a tough time understanding GILD stock. Since the beginning of January, shares stumbled 13%.
Still, with the red ink comes the possibility that GILD stock is de-risked. If so, Gilead deserves to be on your radar of oversold stocks ready for rebound. Specifically, shares trade at only 10.19X forward earnings. In contrast, the sector median stands at almost 14.8X.
Looking ahead to the end of this year, analysts project that revenue will reach $27.49 billion. If so, that would represent a growth rate of 1.4%. Circumstances should improve in 2025, with experts forecasting revenue of $28.05 billion.
Despite the volatility, analysts rate GILD a consensus moderate buy with an $86.17 average price target. That comes out to over 19% upside potential.
Franco-Nevada (FNV)
As a gold-focused royalty and streaming company, Franco-Nevada (NYSE:FNV) presents a tricky case for oversold stocks ready for rebound. Since the beginning of the year, shares slipped 4%. Over the past 52 weeks, they’re down almost 21%. With uncertainties clouding the economy as well as monetary policy, FNV stock has been in limbo.
On the other hand, the Federal Reserve has been struggling to contain inflation. Further, a robust jobs market means more dollars are chasing after fewer goods. Cynically, this dynamic should be favorable for gold-related enterprises.
Not helping matters, though, is analysts’ overall bearishness against FNV stock. On average, they view 2023 sales as coming in at only $1.2 billion. If so, we’re talking almost a 9% loss from last year. However, by the end of this year, the consensus calls for revenue of $1.21 billion. The high-side estimate goes up to $1.4 billion.
Lastly, covering experts sees FNV as a consensus moderate buy with a $132.13 price target, implying almost 24% growth potential.
Xcel Energy (XEL)
Let’s be completely blunt here – Xcel Energy (NASDAQ:XEL) is beaten down but for good reason. According to The Wall Street Journal, the utility owner revealed recently that it may be held liable for damages in wildfires raging in north Texas. In the week ending March 1, XEL stock suffered a loss of more than 16%. Year-to-date, it’s down nearly 22%.
While incredibly risky, a daring upside angle exists. It’s possible that XEL could rank among the oversold stocks ready for rebound. Granted, analysts will have to adjust for new realities. Prior to the fiasco, experts anticipated that Xcel’s revenue would land at $15.96 billion at year’s end. If so, that would represent a 12.4% lift from 2023’s result.
We’ll have to wait and see how the market responds to XEL stock given the recent disclosure. Still, as a long-term investment, the underlying company benefits from a natural monopoly. It’s one of the privileges of operating in this space.
If you want to take the contrarian bet, analysts presently forecast shares to reach $65.50 over the next 12 months.
BioNTech (BNTX)
A German biotechnology firm, BioNTech (NASDAQ:BNTX) wasn’t exactly on everyone’s radar prior to the Covid-19 pandemic. However, it effectively became a household name when the company partnered with Pfizer (NYSE:PFE) to develop a messenger-RNA-based vaccine. Unfortunately for these two healthcare giants, when fear of the SARS-CoV-2 virus faded, so too did their pandemic-fueled business.
The damage is quite apparent when you consider what analysts estimate for revenue looking ahead. For fiscal year 2023, they’re only projecting $4.65 billion in sales. That’s down almost 75% from the prior year’s result. Also, 2024 revenue might be even worse at $3.42 billion. As for profitability, the Street experts are only looking for earnings per hare of $5.07. That’s a far cry from 2022’s tally of $40.49.
At the same time, an argument can be made that adjusted for new realities, BNTX could be undervalued. Currently, shares trade at 7.5X trailing-year earnings, well below the sector median 29.13X.
Analysts believe BNTX stock will clock in a price of $121.67 over the next 12 months, implying 34% upside potential. Thus, it could be one of the oversold stocks ready for rebound.
APA (APA)
As a hydrocarbon exploration specialist, APA (NASDAQ:APA) might not seem the most relevant proposition for oversold stocks ready for rebound. Yes, it’s deflated. Since the beginning of the year, APA stock lost almost 16% of equity value. Over the past 52 weeks, it’s down more than 24%. And just for good measure, in the past six months, APA slipped nearly 33%.
Still, the criticism is that fossil fuels represent the old way of thinking. We’ve got to move to a new paradigm of clean and renewable energy sources. Nevertheless, hydrocarbons command high energy density. Basically, a gallon of gasoline can power an average modern car for 30 miles down the freeway. The same can’t be said for the electron equivalent.
Further, analysts are not buying into the everything-green narrative. In 2024, the project APA sales to hit $8.38 billion, up 14.8% against last year’s tally. In 2025, sales could climb to $9.15 billion. Overall, they rate shares a consensus moderate buy with a $41.22 price target, implying about 36% upside.
Aurora Cannabis (ACB)
Moving into the riskiest ideas for oversold stocks ready for rebound, Aurora Cannabis (NASDAQ:ACB) is a licensed producer of the namesake botanical product. Once one of the most-discussed investments due to the paradigm shift of legalization in Canada, ACB ranks as a top lesson regarding buy the rumor, sell the news. Speculators bid up the idea of legalization. However, the practice of it was more of a letdown.
Still, one might make the argument that ACB stock has fallen too much. Since the start of the year, it has given up more than 33% of its market value. In the past 52 weeks, it plunged below parity by a whopping magnitude of nearly 62%.
Nevertheless, it’s possible that Aurora could make a comeback. For the current fiscal year 2024, analysts anticipate sales of just over $201 million. In 2025, they believe $235.88 million is possible.
Overall, the Street’s experts peg ACB as a consensus moderate buy with an average price target of $4.66. If so, we’re talking about a 47% increase.
AngioDynamics (ANGO)
When it comes to market performances, AngioDynamics (NASDAQ:ANGO) just about started 2024 on the worst note possible. According to MarketWatch, shares of the medical devices firm – which address unmet patient needs regarding chronic and acute diseases – fell sharply when it widened its full-year loss forecast. Management also announced a restructuring of the company’s manufacturing footprint.
When the dust finally settled, ANGO closed at $6.21, a far cry from the day earlier closing price of $7.75. Not only that, the red ink got even darker. Currently, shares are down almost 32% since the January opener. In the past 52 weeks, they’re off the pace by roughly 57%.
As you might imagine, analysts don’t expect much at the end of 2024, with projected average sales at $312.12 million. If so, this tally would represent a loss of 7.9% against the prior year’s result. However, the most optimistic target calls for 2024 sales to hit $321.9 million, then $340.2 million one year later.
Enticingly, experts believe ANGO could reach $16 per share. That would mean almost 200% up, making it one of the top-tier oversold stocks ready to rebound.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.