J.P. Morgan Says Buy These 2 Beaten-Down Stocks for Over 60% Upside Potential

What to do with the markets today? While last week ended on a down note, we are still seeing a general rallying trend, with year-on-year losses being greatly reduced and major indices exiting bear territory. The main point for now, as has often been the case this year, is volatility.

Covering the markets for JPMorgan, global market strategist Marko Kolanovic asked investors to take advantage of declining days and buy dips. Kolanovic explained, “Buying on the weakness has yielded positive returns so far and has worked better than suggestions to stay out of the market and start ‘nibbling’ at 3500 or 3300.”

As for the market in general, Kolanovic described last month’s inflation data as ‘quite encouraging’ and said, “The decline in July CPI may repeat in August given the low energy prices hit so far (data release Sept. ) 13th) and provide space for the Fed to adapt to the market.”

Going forward, Kolanovic forecasts the S&P 500 to reach 4,800 by the end of the year, up 13.5% from current levels. His colleagues among JPM stock analysts have chosen two beaten out stocks for investors’ consideration, which predict a 60% or better upside for the coming year. ticker through TipRank’s DatabaseWe learned that each earned a “strong buy” consensus rating from Rest of the Street.

IHS Holding ,IHS,

We will start in the technology sector, where IHS Holding is a telecommunications infrastructure company working on the development and expansion of wireless communication network towers in sub-Saharan Africa, the Middle East and Latin America. In total, IHS boasts more than 39,000 towers in its property portfolio in 11 countries.

IHS is a leading tower operator and provider in its area of ​​operation, and provides solutions for a variety of telecommunication needs including small cell ops, fiber connectivity, rural telephone networks. The company works to realize value and reduce costs for itself and its customers, as part of a multifaceted network operation.

In the most recent fiscal quarter, 2Q22, IHS reported a top line of $467.7 million. This was down from the $763.5 million reported in the year-ago quarter. Earnings were negative in Q2, coming in at a loss of $177 million. This translated to a diluted EPS loss of 53 cents, up 60% compared to the year-ago quarter. Despite the decrease in earnings, IHS’ cash position has improved marginally over the past 12 months. The company reported $191 million in cash from operations in Q2, compared to $174 million in the year-ago quarter, and y/y, cash and liquid assets increased from $541 million to $567 million.

Shares of this telecom firm have fallen over the past several months, and the stock is down 48% year-on-year.

analyst Philip CusickJP Morgan, in its coverage of this stock, sees the decline in the share price as an opportunity for investors.

“We believe that at current 6.5x 2022E EV/EBITDA, IHS shares are undervalued, and expect valuations to improve.
Over time… we prefer a strong growth profile in areas where IHS operates, driven by high population growth, expanding economic activity, high penetration and increased usage, and the transition to 4G and eventually 5G Is. The company has a strong operating track record driven by a long-standing and experienced management team to deliver results in challenging markets,” Cusick said.

This, in the analyst’s view, adds to an overweight (i.e. buy) rating – and his $16 price target indicates room for substantial growth on the order of ~119% in the coming year. (To see Cusick’s track record, click here,

Overall, while shares are down, street sentiment on IHS remains solid. The stock has had 7 recent analyst reviews on record, and they’re all positive — thanks to a strong buy consensus rating. The stock is selling for $7.32 and its $19 average price target suggests a one-year upside potential of ~160%. ,View IHS Stock Forecast on TipRanks,

Snap One Holdings ,SNPO,

With the second JPM pick, we will turn to the smart home sector. Snap One is a leading distributor of smart home tech, offering customers solutions for entertainment and networking, home audio, home security and networks, and even remote power management. Smart solutions put it all at the fingertips of the property owner. Snap One’s product lines and installations are available in both residential and commercial markets. The firm operates as a holding company, distributing its products through a network of subsidiaries and brands.

Smart home technology has been growing in popularity over the past several years, and Snap One has been reporting quarter-over-quarter revenue growth for the past year, but shares of SNPO are down 47% so far this year. Many factors affect the share price. The company’s revenue growth has declined, while net losses have been rising.

That doesn’t mean the current numbers are bad — not as good as investors would like to see. In 2Q22, the company reported $296.9 million, a 17% year-over-year profit. At the same time, the net loss grew 27% y/y to reach $1.3 million. The company’s cash holdings fell from $40.6 million on December 31, 2021, to $31.3 million on June 30, 2022. Looking ahead, the company expects full-year 2022 net sales to come in between $1.16 billion and $1.18 billion, up 17% year-on-year profit of 15%.

JP Morgan Analyst paul chung Reminds us that Snap One’s Q2 results outperformed forecasts, adding, “Fiscal Year 22 guidance was reiterated despite the beat, baking in some conservatism in our view given the macro background; Still implies about 20% y/y growth though; A strong guide in our view when most firms are cutting guidance. Pricing actions in June should provide support for gross margin, coupled with a more measured pace of OPEX spending to generate solid profitability and cash flow. Integrator demand feedback remains strong, and the high-end consumer appears to be relatively more resilient in the current environment. ,

To this end, Chung has set a price target of $18, which means a 62% increase in one year, which supports his overweight (i.e. buy) rating on the stock. (To see Chung’s track record, click here,

Overall, this interesting smart home firm has received 6 recent Wall Street reviews, and they break out 5 to 1 in favor of buy over hold, for a strong buy consensus rating. The stock is selling for $11.09 and its $19 average price target suggests a 12-month 71% gain ahead. ,View SNPO Stock Forecast on TipRanks,

To find great ideas for stock trading at attractive valuations, visit TipRanks. best stocks to buyA newly launched tool that aggregates all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are those of featured analysts only. The content is to be used for informational purposes only. It is very important to analyze yourself before making any investment.


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