buy cheap? Buyers also like to bargain in the stock market. However, defining a bargain can be difficult. There is a stigma attached to low stock prices, based on the fact that most stocks fall for no reason at all. And those reasons usually lie in some aspect of the company’s poor performance.
That said, you can still find stocks trading at huge discounts, stocks whose share price has been pushed down – perhaps by fundamentals, maybe by market conditions, maybe just plain bad luck – and those discount prices are somewhat higher. The market is tied to the best upside potential.
using the TipRank’s DatabaseIn this article, we’ve identified two stocks that have low prices right now — and powerful upside potential for the year ahead. Not to mention that each gets a “strong buy” consensus rating from the analyst community. Let’s dive in and find out what’s driving that possibility.
Luminor Technologies ,Lazari,
The first stock we’ll look at is Luminar Technologies, a Palo Alto-based Silicon Valley high-tech firm operating in the autonomous vehicle segment. Luminar is the designer and manufacturer of the Lidar system, state-of-the-art sensor technology that serves as the ‘eyes’ for self-driving cars. The guts of the Luminar hardware include all levels of lidar technology, from semiconductor chips to sensors, transceivers, receivers and electronics that make it all work.
Luminar went public in December 2020 via a SPAC merger, and the company’s shares peaked above $40 in that time. Since then, however, shares have fallen 77%. During that time, the company’s net loss has also deepened for five consecutive quarters. Revenue has been low, reflecting the company’s low-level sales as it braces itself to supply an industry that is not yet ready for mass production.
Not everything is doom and gloom though. Luminar offers some high potential for investors. For starters, lidar is essential in autonomous vehicle technology – and Luminar’s systems are well-regarded. Furthermore, the company’s revenue, though modest, is headed in the right direction; 2Q22’s top line, at $9.9 million, was up 45% quarter-over-quarter and 57% year-over-year — and beat forecasts by 12%. EPS was reported at negative 18 cents on a non-GAAP net loss of $65 million. Luminar was able to end the quarter with $605.3 million of cash in the bank as of June 30.
On another positive note for investors, Luminar raised its forward revenue guidance for the full-year 2022 by $40 million to a range of $40 million to $45 million.
Overall, Luminar shares are down 49% year-over-year. However, the decline hasn’t discouraged Luminor President and CEO Austin Russell from increasing his stake. Russell has made a series of purchases over the past two weeks, each for a six-digit amount. In total, Russell has spent more than $1.6 million on multiple blocks of LAZR, totaling 175,000 shares.
Deutsche Bank Analyst Emmanuel Rosner Also excited about Luminar and its prospects, writing: “We are impressed by LAZR’s ongoing success in winning new business and growing order book by a magnitude of +60% this year. The company also partnered with leading OEMs and mobility providers.” continues, which should give it a clear path towards profitability and market expansion. We anticipate revenue to be $44m/$133m in 2022-23E and then increase to >$385m by 2024E… We believe that LAZR is one of the best positioned LiDAR suppliers to win big business for L3+ Autonomy in the near future.
All this prompted Rosner to rate LAZR shares a buy with a $15 price target. This target expresses their confidence in LAZR’s ability to climb ~74% higher in the next year. (To see Rosner’s track record, see click here,
The Strong Buy analyst consensus rating on LAZR shows that the Street is in general agreement on that Bullish view. Recent 8 analyst reviews break down 6 to 2 in favor of Holds Over Hold, and the stock’s $15 average price is practically the same as Rosner’s. ,View LAZR Stock Forecast on TipRanks,
Next, there is AppLovin, a software platform that provides customization tools for mobile app developers. The proliferation of mobile smart devices and their supporting apps has opened up a huge opportunity for app makers — and these, in turn, make up AppLovin’s customer base. In addition to app creation tools, AppLowin provides advertising, analytical and publishing services.
Some numbers will tell the story. AppLovin has seen over 4 billion downloads over the past 12 months, and most recently brought in $776 million in top line revenue for 2Q22. The value of that top line was up 16% year-over-year, and included a massive 118% y/y growth in software platform revenue, totaling $318 million.
In terms of earnings, the story was different. Applovin reported a net loss of $22 million, compared to a profit of $14 million a year ago. The company faced serious roadblocks in the mobile app industry, including reduced consumer spending, and changes to overall privacy policies that affected app discovery rates.
Overall, investors are wary, and the stock is down 73% this year. However, Applowin is attracting positive attention from Wall Street analysts, who see the lower price as an attractive entry point.
Bulls have 5-star analyzer Joseph SquallyTruist, who writes: “The software segment was again the bright spot in 2Q22 as APP’s ML Engine Xeon continues to fuel its growth. This was offset by weakness in Apps revs, driven by soft consumer demand/margin increase.” While this segment is under strategic review, this compounded shift should lead to higher quality revenue/margin, which in our view over time will help to re-rate the stock and increase shareholder value. will help drive it.”
To this end, Squally puts a buy rating on the APP, and adds a $65 price target to it which indicates room for upwards of 154% over the 12-month period. (To see Squally’s track record, see click here,
The mood on the Street is just as bullish as Trust’s outlook, with 13 positive analyst reviews giving it a unanimously strong buy consensus rating. The current trading price is $25.55 and an average price target of $60.38 means a gain of close to 136% over the one-year horizon. ,View AppLovin Stock Forecast on TipRanks,
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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.