{"id":9989,"date":"2022-06-30T19:58:22","date_gmt":"2022-07-01T00:58:22","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=9989"},"modified":"2022-06-30T19:58:24","modified_gmt":"2022-07-01T00:58:24","slug":"https-investorplace-com-2022-06-3-of-the-most-oversold-stocks-to-buy-for-2022","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=9989","title":{"rendered":"https:\/\/investorplace.com\/2022\/06\/3-of-the-most-oversold-stocks-to-buy-for-2022\/"},"content":{"rendered":"\n<p><strong><em>Oversold stocks present an opportunity for investors<\/em><\/strong><\/p>\n\n\n\n<ul><li><strong>Disney<\/strong>\u00a0(<a href=\"https:\/\/investorplace.com\/stock-quotes\/dis-stock-quote\/\"><strong><u>DIS<\/u><\/strong><\/a>) is getting sold off like the rest of streaming stocks, but investors are ignoring its other assets and strengths.\u00a0<\/li><li><strong>Shopify<\/strong>\u00a0(<a href=\"https:\/\/investorplace.com\/stock-quotes\/shop-stock-quote\/\"><strong><u>SHOP<\/u><\/strong><\/a>) has some issues, but at some point an 80%-plus decline in seven months accounts for those problems.\u00a0<\/li><li><strong>Netflix<\/strong>\u00a0(<a href=\"https:\/\/investorplace.com\/stock-quotes\/nflx-stock-quote\/\"><strong><u>NFLX<\/u><\/strong><\/a>) has rather suddenly become a value stock after a treacherous decline, despite it being a global streaming leader.<\/li><\/ul>\n\n\n\n<p>There\u2019s no way to frame it: We\u2019re in the throes of a bear market. If your stock or stocks are outperforming the indices, congratulations. There aren\u2019t many doing so. If they are positive on the year, even better, as there are even less of those stocks (outside of energy). Instead, many names are down so much they have become oversold stocks.<\/p>\n\n\n\n<p>I want to make an important point: Oversold conditions can become even more oversold in the coming weeks and potentially months. Just like in a bull market, overbought stocks can become even more overbought. It\u2019s why traders shouldn\u2019t sell stocks short just because they have rallied a lot.<\/p>\n\n\n\n<p>In that context, investors shouldn\u2019t&nbsp;<em>buy<\/em>&nbsp;stocks simply because they have fallen a lot. As growth investors can attest, down 40% or down 50% can quickly turn into down 70% or down 80%.<\/p>\n\n\n\n<p>That said, the companies that have promising platforms, strong businesses (and ideally both) should be combed over amid this bear market. In the face of all this selling, these oversold stocks become hidden gems.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Ticker<\/strong><\/td><td><strong>Company<\/strong><\/td><td><strong>Current Price<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/investorplace.com\/stock-quotes\/dis-stock-quote\/\"><strong><u>DIS<\/u><\/strong><\/a><\/td><td><strong>Disney<\/strong><\/td><td>$96.84<\/td><\/tr><tr><td><a href=\"https:\/\/investorplace.com\/stock-quotes\/shop-stock-quote\/\"><strong><u>SHOP<\/u><\/strong><\/a><\/td><td><strong>Shopify<\/strong><\/td><td>$367.89<\/td><\/tr><tr><td><a href=\"https:\/\/investorplace.com\/stock-quotes\/nflx-stock-quote\/\"><strong><u>NFLX<\/u><\/strong><\/a><\/td><td><strong>Netflix<\/strong><\/td><td>$185.69<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2>Oversold Stocks to Buy: Disney (DIS)<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright\"><img src=\"https:\/\/investorplace.com\/wp-content\/uploads\/2022\/05\/dis-1600-1-300x169.png\" alt=\"Disney logo on a store front. DIS stock.\" class=\"wp-image-2239841\"\/><\/figure><\/div>\n\n\n\n<p>Source: chrisdorney \/ Shutterstock<\/p>\n\n\n\n<p><strong>Disney<\/strong>&nbsp;(NYSE:<a href=\"https:\/\/investorplace.com\/stock-quotes\/dis-stock-quote\/\"><strong><u>DIS<\/u><\/strong><\/a>) is being dragged down with the rest of the streaming space, like&nbsp;<strong>Netflix<\/strong>(NASDAQ:<a href=\"https:\/\/investorplace.com\/stock-quotes\/nflx-stock-quote\/\"><strong><u>NFLX<\/u><\/strong><\/a>) and&nbsp;<strong>Roku<\/strong>(NASDAQ:<strong><a href=\"https:\/\/investorplace.com\/stock-quotes\/roku-stock-quote\/\"><u>ROK<\/u><\/a><a href=\"https:\/\/investorplace.com\/stock-quotes\/roku-stock-quote\/\"><u>U<\/u><\/a><\/strong>). However, that doesn\u2019t seem reasonable, especially with Disney stock down more than 50% from its all-time high.<\/p>\n\n\n\n<p>Overall, in the space of just a couple of years, the company has built a robust streaming platform with Disney+, Hulu and ESPN+. For just Disney+ alone, the company has&nbsp;<a href=\"https:\/\/thewaltdisneycompany.com\/app\/uploads\/2022\/05\/q2-fy22-earnings.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">137.7 million subscribers<\/a>. In all, the company has more than 205 million direct-to-consumer subscribers.<\/p>\n\n\n\n<p>There is a future in video consumption and clearly, Disney has firmly staked its position near the top. Outside of streaming, though, it has one of the world\u2019s most successful hospitality businesses with its Parks and Experiences unit. Now that the economy is getting back into full swing, travel is booming and the parks are coming back to life. Combined with its streaming unit, Disney has built a formidable multi-pronged business for the very long term.<\/p>\n\n\n\n<p>Furthermore, earnings and revenue are roaring back to life, with full year 2022 estimates calling for 92% and 34.5% growth, respectively. So, if we revisit the Covid low near $80, bulls may want to look very closely at this stock.<\/p>\n\n\n\n<h2>Shopify (SHOP)<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright\"><img src=\"https:\/\/investorplace.com\/wp-content\/uploads\/2022\/05\/shop_shopify1600-300x169.png\" alt=\"Shopify (SHOP) on the phone display.\" class=\"wp-image-2225541\"\/><\/figure><\/div>\n\n\n\n<p>Source: Burdun Iliya \/ Shutterstock.com<\/p>\n\n\n\n<p>High-growth stocks have been the focal point of the bear market. Investors should take care when buying the dips in downtrends, but Shopify is in an interesting situation after more than 80% and ahead of its 10-for-1 stock split.<\/p>\n\n\n\n<p>In turn, the stock has been hanging around $300 lately, which was support in 2019 and the low during the Covid-19 selloff. From that perspective \u2014 that of technical analysis \u2014 Shopify has a reasonable risk\/reward setup.<\/p>\n\n\n\n<p>Upon further inspection, other qualities are popping up as well. For instance, analysts expect 25.6% revenue growth this year, then 30.3%, 27.5% and 20.6% revenue growth in&nbsp;<a href=\"https:\/\/www.cmlviz.com\/stocks\/SHOP\/analysts\" target=\"_blank\" rel=\"noreferrer noopener\">each of the next three years<\/a>&nbsp;through 2025.<\/p>\n\n\n\n<p>On top of that, Shopify has positive earnings and is growing its bottom line significantly faster. Granted, these are just estimates and Shopify still faces headwinds. But after such a big pullback, many of these risks seem accounted for. Thus, as a seemingly oversold stock, SHOP stock is one to watch.<\/p>\n\n\n\n<h2>Oversold Stocks to Buy: Netflix (NFLX)<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright\"><img src=\"https:\/\/investorplace.com\/wp-content\/uploads\/2019\/07\/nflx1600-300x169.jpg\" alt=\"The Netflix (NFLX) logo on a tablet with earbuds and a bowl of popcorn nearby.\" class=\"wp-image-1399476\"\/><\/figure><\/div>\n\n\n\n<p>Source: Riccosta \/ Shutterstock.com<\/p>\n\n\n\n<p>Another streaming giant, Netflix has been discarded as if it\u2019s a worthless asset with a terrible platform. Netflix may have been a terrible value proposition near $700, but now trading near $185, we have to reevaluate things.<\/p>\n\n\n\n<p>Netflix is forecast to generate just 9.2% revenue growth this year and next year, while earnings are forecast to be down slightly this year. On the plus side, analysts still expect the firm to generate roughly $11 per share in profit, leaving NFLX stock trading at\u202616 times earnings. Can that be right?<\/p>\n\n\n\n<p>That\u2019s right! The stock that has been notoriously flamed for its nose-bleed valuation for years is now suddenly cheaper than the&nbsp;<strong>S&amp;P 500<\/strong>. Its earnings may not be the same quality as&nbsp;<strong>Microsoft\u2019s<\/strong>&nbsp;(NASDAQ:<a href=\"https:\/\/investorplace.com\/stock-quotes\/msft-stock-quote\/\"><strong><u>MSFT<\/u><\/strong><\/a>), but at this price, we need to seriously examine Netflix.<\/p>\n\n\n\n<p>The company doesn\u2019t have robust growth at the moment, but it\u2019s an undisputed champion of streaming video. With\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/s22.q4cdn.com\/959853165\/files\/doc_financials\/2022\/q1\/FINAL-Q1-22-Shareholder-Letter.pdf\" target=\"_blank\">222 million paying households<\/a>\u00a0worldwide, Netflix simply shouldn\u2019t be ignored. If Netflix cracks down on password sharing and\/or incorporates ad-based revenue \u2014 either on its own or via a tie-up with Roku \u2014 then there could be notable long-term value here.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oversold stocks present an opportunity for investors Disney\u00a0(DIS) is getting sold off like the rest of streaming stocks, but investors<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421,3422],"tags":[3518,3459,888,3516,3517,3425],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/9989"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9989"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/9989\/revisions"}],"predecessor-version":[{"id":9990,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/9989\/revisions\/9990"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9989"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}