3 “hard buy” stocks for investors who fish the lowest


TThe oldest advice in the markets is to buy low and sell high. The hardest trick in the markets is knowing how to recognize a low cost stock that is poised to deliver solid gains. This is a trick because, in truth, low cost is a relative description. A stock can have a triple-digit price and continue to sell at a discount if it passes a recent high point.

The result is that investors looking to buy low can use the steep declines in fundamentally healthy stocks as the deciding factor. Wall Street analysts are quick to report deals in the market, and a review of their ratings will point investors to stocks that have hit a hurdle, lost the share price, but have retained the strengths that allowed them to peak in the first place.

We used the TipRanks platform to extract details about three values ​​that meet this profile. This is an interesting lot, coming from several market niches, but all are strong buys with significant upside potential and they are all down at least 30% from the peaks reached earlier this year. year. Let’s dig deeper and check them out.

Open loan company (LPRO)

The first is Open Lending, an automotive loan finance company. Financing has been the driving force behind car sales – new and used – in recent years, and will likely be more important in the future as inflation drives up prices in the auto markets. Open Lending, a Texas-based company, facilitates the decision-making process through loan analysis, risk modeling and risk-based pricing, as well as automated decision making. The company went public last year through a PSPC transaction.

Open Lending works with auto loan companies, providing a platform to streamline their lending process. The company’s services allow lenders to make the best use of their assets and maximize repayment rates. The result is lower risk and higher returns, a win for everyone, including the end customer who drives off in a newly purchased car.

Despite some volatility until 2021, the company’s shares generally remained high – until September of this year, when they started to drop from their peak. From that high, the stock is down 43%.

Even though the stock is down, company management called the recent 3Q21 report a “record.” Revenue was $ 58.9 million, down slightly from $ 61.1 million in 2Q21, but up an impressive 97% year-over-year. The company facilitated more than 49,000 certified loans in the quarter, up 138% year-over-year. EPS was positive, at 23 cents per share, compared to a loss of 62 cents per share in the prior year quarter.

Written about this action for Canaccord Genuity, 5 Star Analyst Joseph Vafi sees the company in a strong position despite inflationary headwinds.

“Another all-time record quarter, against Covid, global chip shortages and rising car prices and highlighting how resilient the Open Lending platform is to such macro headwinds…. the LPRO business model is still expanding, with strong execution in credit union refi, potential launch of new products in the near term and most importantly, advancement of relationships with automakers in addition to the two already underway . Even in a difficult quarter for auto transactions, the company signed 16 new customers, four of which had assets of $ 1 billion or more, ”noted Vafi.

To this end, Vafi gives the LPRO shares a buy rating, with a price target of $ 55, which implies a 12-month upside potential of a whopping 130%. (To see Vafi’s track record, Click here)

Overall, it’s clear that Wall Street likes the outlook for this stock. Of the 8 recent reviews, 7 are to be bought against 1 to be kept, for a consensual purchase note. The shares are priced at $ 23.90, and the average price target of $ 38.57 suggests a gain of 61% over the coming year. (See the analysis of LPRO shares on TipRanks)

Five9 (FIVN)

Next up is Five9, an AI cloud company offering a scalable contact center platform. Five9 has a smart product in a crowded industry, but online contact is a growing industry. The company’s software uses AI to enable faster analysis of data with greater precision and efficiency. Contact center customers can use AI to track and route calls, direct callers and service agents, and process information.

The big news recently on Five9 has been the company’s failed talks with Zoom. The two companies were in negotiations over an offer from Zoom to acquire Five9. The offer, for an all-stock deal, was worth $ 14.7 billion, but Five9 shareholders rejected the deal on the last day of September. It is very unusual for the shareholders of a company to reject a merger agreement in this way.

Five9 stock, which had been volatile this year, had been declining since its peak in August. It fell further after the rejection of the Zoom offer; currently FIVN shares are down 32% from this peak.

Despite the rejection of Zoom’s offer in the third quarter, Five9 achieved record revenues and topped EPS estimates in the third quarter financial release. The company’s revenue was $ 154.3 million, up 38% year-on-year, and EPS, at 28 cents, was 12% above forecast of 25 cents.

Terry tillman, 5-star analyst at Truist, was impressed with Five9’s quarter – and the company’s outlook for next year. He writes: “The FIVN has returned to its regular quarterly appeal without missing a beat. The company had record third quarter bookings and appeared confident about the continued strong momentum in the growth of the business, while confirming 2026 revenue ($ 2.4 billion) and profit margin. EBITDA (~ 23%) as potential targets set out in recent documents filed with the SEC. Given the underperformance of equities since the Zoom deal was terminated, we believe this is a good entry opportunity for investors as fundamental momentum remains strong. “

In keeping with his bullish approach, Tillman gives LIFE shares a buy rating and his price target of $ 210 suggests upside potential of 48% for the coming year. (To look at Tillman’s record, Click here)

Like Tillman, Wall Street is confident in Five9’s prospects, and this can be seen in the 16 reviews recorded. These break down to 14 buys and only 2 takes, to support the strong buy consensus. The average price target of $ 199.25 implies a 40% increase over one year from the current price. (See the analysis of FIVN shares on TipRanks)

Annexon Biosciences (ANNEX)

The last stock we will be looking at, Annexon, is a clinical-stage researcher focused on C1q, a molecule that initiates the classical complement pathway – and which is implicated in a number of autoimmune and neurodegenerative diseases that affect the body, the brain and the eyes. The company’s development pipeline includes drug candidates designed to act as potent selective C1q inhibitors, to prevent tissue damage and the antibody-mediated autoimmune response, as well as to preserve the function of synapses associated with the cell. cognitive decline in complement-mediated degenerative diseases. The Company’s drug candidates have wide application in multiple complement-mediated conditions.

This is all a mouthful, but in the end, Annexon is developing drug candidates with multiple indications. The autoimmune program, for example, has 3 drug candidates under study for five different conditions. The most advanced of these leads, featuring ANX005 as a treatment for Guillain-Barré syndrome, is enrolling patients in a phase 2/3 clinical trial, scheduled for completion in 2023. Previous data, from the Phase 1b and drug interaction study was presented this year and showed an acceptable tolerability profile as well as positive therapeutic action.

The company recently completed a phase 2 trial of ANX005 in the treatment of Huntington’s disease (HD) and has started dosing in a phase 2 trial of the amyotrophic lateral sclerosis (ALS) drug. The publication of data on these trials is expected in 4Q21 and during 2022 respectively. Annexon recently extended its development program with ANX009, a new drug candidate for the treatment of lupus.

Despite this active pipeline, the company has seen its stock drop 61% from its peak reached last March.

However, the JPMorgan analyst Anupam Rama remains bullish on Annexon, especially taking into account the company’s multiple shots on goal.

“In a winning scenario, we are looking for a clean safety profile for ANX005 and positive directional trends on key biomarkers (especially on the neurofilament light chain or NfL), with a homerun scenario showing the initial / early trends of functional benefit … While we recognize that HD data will be at an early stage, we note that upward scenarios will likely have a positive impact on the broader neurodegeneration efforts (i.e. the value of the platform). Importantly, from current levels, we see an increase in ANNX shares on Guillain-Barré Syndrome (GBS) alone (through the mid-1920s) and the broader pipeline, including phase 2 HD playback, as offering a pipeline option, ”the analyst said. .

Rama rates ANNX stocks as overweight (i.e. buy), with a price target of $ 37 to indicate a 170% margin of appreciation over the next 12 months. (To look at Rama’s background, Click here)

JPM’s opinion is hardly out of place here, as the stock’s strong buy consensus rating is unanimous, based on 4 positive reviews. The shares are priced at $ 13.7 and the average price target of $ 38 suggests a very strong one-year upside potential of 177% from current trading levels. (See the analysis of ANNX shares on TipRanks)

To find great ideas for trading stocks at attractive valuations, visit TipRanks’ Best stocks to buy, a recently launched tool that brings together all the information about TipRanks equity.

Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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