Bear markets do not last forever. No matter how far the current market falls before it recovers, it will recover. And there are stocks that will grow nicely once inflation is licked and the economy is back on track. As we noted in our article about bear markets as a key to future wealth, the key is to choose stocks with strong intrinsic value and then stay the course. The tech mega stocks have been the market darlings for years but there are $10 stocks that are commonly overlooked. Part of this is because not many analysts follow them. In this article we look at a handful of low-priced stocks with upside potential in a down market.
Profitable companies provide products and services to targeted market niches and do so efficiently. OPEN provides a digital platform for US residential real estate. The platform facilitates buying and selling residential property online. The company also offers escrow and title insurance services. The company focuses its efforts on the hottest real estate markets at any given time. Like many stocks, this one has had a tough time year to date having fallen from $15 a share at the start of the year to $5.02 in mid-July. The average analyst price target for this stock is in the $12 to $13.50 range as it is a cyclical stock that will rise and fall with the housing market and whose growth over the long term will follow the growth of the economy.
Sabre is a support company for the airline industry. It offers technology and software for airlines across the globe. Its services include prices and availability for flights, car rental, cruise lines, railroads, and tour operators. It deals with both online and offline travel agencies as well as corporate travel departments and travel management companies. Its portfolio of solutions and products is presented as a software-as-a-service platform for commercial and operations products, date-driven intelligence travel solutions, agency solutions, and carrier reservation systems. Analyst targets run in the $12.50 range for a stock that is currently trading in the $6 range. Like Opendoor Technologies this is a cyclical stock and will benefit as the economy recovers and travel booms.
Tetra is an oil and gas company with a diversified geographic base. Like many energy companies, its price has benefitted from the surge in oil prices this year. It also supplies additives, clean brine solutions, and related products to the oil and gas industry. For offshore oil platforms these folks provide water management solutions through their Water and Flowback Services division. Because this company is a support company to the oil and gas industry, it will tend to rise less and fall less than companies that are strictly in the energy realm. These folks are keeping up with the movement into low-carbon markets for energy using its reach and expertise in chemicals. One highlight is its production of ultra-pure zinc bromide for energy storage and stationary batteries. Another is its production of lithium. The stock currently trades for $3.70 a share and there are analyst targets in the $7 range.
Stocks with Upside Potential in a Down Market – SlideShare Version