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3 stock candidates bounce back to watch


That means they are top candidates to recover from recent selling pressure, especially with their quality business models and growth prospects. Here are 3 rebound stock candidates for future follow-up.

April 24, 2021

4 minutes of reading

This story originally appeared on MarketBeat

Trying to buy stocks that are in a steady downtrend for weeks or months can be a daunting endeavor. Everyone wants to choose the correct bottom, but often not catching a bottom can lead to huge losses. The truth is that many of these stocks are in a downtrend for a reason, whether it has to do with sentiment or fundamental changes in trading. On the other hand, there are some big winners from last year that probably didn’t deserve the degree of heavy selling they went through in 2021.

That means they are top candidates to recover from recent selling pressure, especially with their quality business models and growth prospects. Here are 3 rebound stock candidates for future follow-up.

Advanced Micro Devices (NASDAQ: AMD)

The first is Advanced Micro Devices, an underperforming semiconductor stock this year, especially due to a semiconductor shortage. Stock is down about 10% so far and is a company most likely to be undervalued by investors at this point. AMD is a leading supplier of graphics processors and semiconductors used in computers and many other devices. It is a high quality stock that could escape the recent downtrend for a number of reasons.

First, you are about to have an acquisition of programming logic equipment supplier Xilinx, which will increase AMD’s market-solvable chance from $ 79 billion to $ 110 billion, while also increasing revenue and future costs. The buyback has been approved by both companies and is awaiting regulator approval, which could be a positive catalyst for the stock once confirmed. There’s also AMD’s next-generation EPYC processor that is helping the company gain a lot of market share in the CPU data center industry and could be the engine of future growth. Final, From AMD Upcoming earnings reports could be exactly what the stock needs to start rising again, especially given the company’s strong 2020 performance seeing both revenue and profit increase. more than 50% per year.

Baidu (NASDAQ: BIDU)

To be fair, Chinese equities lost momentum in 2021 after doing very well for much of last year. A case in point is Baidu, a stock that hit an all-time high in February but then fell due to concerns about the liquidation of Archegos Capital Management and concerns about the growing risk of delisting. Chinese stocks on US exchanges. The big sell-off could really turn out to be the perfect buying opportunity, especially when you consider this firm’s solid business model and ambitious transformations into the electric vehicle industries and autonomous driving.

Baidu is the leading Chinese language online search provider and owner of the most popular search engine in China. The company generates revenue from auction-based interest search advertising services, which is very appealing as China is one of the fastest growing countries in the world. economies. Baidu is also worth a look as the company plans to offer self-driving systems to 1 million cars in the next 3-5 years, and has partnered with Chinese automaker Geely to produce electric vehicles. . This is certainly a strong candidate for recovery in the coming months, but keep in mind that it also comes with additional risks.

Twitter (NYSE: TWTR)

Social media shares have been affected over the past few months, and including Twitter, which is interesting as there haven’t been any significant changes in the company’s business. A recent weakness could be a strong buying opportunity, especially if the company can find a way to make even more money from its platform. If you are not familiar with Twitter, this is a social media platform focused on real-time content. It is one of the strongest brands in online media and generates revenue by advertising services and by licensing data to third parties.

Twitter will report earnings for the first quarter of 2021 on April 29 and it will be interesting to see if ad spending will increase as the economy recovers from the impact of the pandemic. In Q4 2020, Twitter saw its revenue grow 28.1% year-on-year to a record $ 1.29 billion and monetized daily operational use. Its average increased by 27% to 192 million. Thanks to the optimism surrounding this business and its unique niche on social media, this is a great recovery candidate to watch in the coming weeks, especially if stocks can. Get back to the 50-day simple moving average with competence.

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