Also take into account that the company’s “metamorphosis,” could be the catalyst that helps it re-accelerate growth in the years ahead. ![]() This is a name deserving of a much higher multiple. Specifically, its high margins, strong balance sheet and economic moat. The FAANG component now trades for 17.2x earnings, taking into consideration its high-quality. With this big drop, Meta shares have fallen to a very low valuation. Yet a pullback of this degree? This is an overreaction. Yes, with its rate of growth slowing down, a pullback may have been justified. In total, FB stock has dropped more than 30%. Shares in the social media conglomerate and aspiring metaverse company saw an immediate 23% drop in price following its earnings release on Feb 2. Tanking after its latest quarterly results and guidance update, Meta Platforms (formerly Facebook Inc.) is now on sale. Then again, unlike Lucid, or Rivian (NASDAQ: RIVN), the electric truck and van startup that Ford owns a piece of, a low valuation (P/E of 8.6x), and a rebound for its legacy gas-powered vehicle business (as the global chip crisis eases) not only could soften the blow.Īs I recently discussed, potential catalysts like the sale of a minority stake in its EV unit could help F stock rev up in price much sooner than with LCID, RIVN, or even Tesla (NASDAQ: TSLA).Ī value stock with growth characteristics, it’s one of the Robinhood stocks that looks like a great opportunity in today’s market. Still, there may be the concern that, as investors dial down their excitement for EV plays, shares in the Detroit automaker could give back more of their “electrified” gains from 2021. This drop is modest compared to what we’ve seen with EV pure plays like Lucid Group (NASDAQ: LCID ). However, since last month, when the latest wave of “EV mania” faded, F stock has experienced a sharp pullback, falling around 14.7%. It shot “to the moon,” as investors grabbed it as yet another wager on the vehicle electrification megatrend. Last year, due to its big pivot into electric vehicles (EV), Ford almost entered meme stock territory. If you’re looking for a stock that’s benefiting from changes in monetary policy, and could continue to perform strongly, consider buying this venerable financial institution. Yet while BAC stock may be up more than 49% over the past year, and up around 11% year-to-date (while major indices are in the red so far this year), that doesn’t mean a big drop is in the cards.īarring the inflation/rate hike issue having a severe negative impact on the economy, the bank is projected to see a nice boost to earnings per share (EPS) between 20.ĭuring this period, analyst estimates call for BAC’s EPS to rise from $3.26 to $3.79, a more than 16% increase. First, due to the pandemic recovery, and now, due to rate hikes. Granted, the stock has been on a big run over the past year. ![]() The Federal Reserve’s rate hikes are set to bring about a “back to normal” for banking.Ī great way for newbie investors to play this trend is to buy shares in a large money center bank, like Bank of America. After years of a near-zero interest rate environment, bank profitability will improve. There are plenty of sectors that are seeing a negative impact from rising interest rates, but when it comes to bank stocks, it’s the opposite. ![]() So, if you’re new to investing, which Robinhood stocks should you add to your portfolio? Keep these seven, all meeting the low-risk, reasonably priced criteria, on your watchlist as potential buys: The recent tech sell-off has pushed some high-quality big tech leaders to more than reasonable valuations. ![]() Yet at the same time, tech isn’t excluded. Think automakers, banks, and pharmaceutical companies. Many of these names are “old economy” sorts of stocks. There are many widely held stocks that offer relatively lower levels of risk, trading at relatively low price-to-earnings (P/E) multiples, with the potential to produce solid returns. But while you may want to stay away from meme stocks, “story stocks” and other overvalued names, that doesn’t mean you should put your plans to start investing fully on hold. With this in mind, steering clear of the more high-flying names popular with retail investors who use brokerage apps like Robinhood may be a wise move. As inflation, rate hikes and other factors point to more rocky times ahead, some of the most popular stocks out there (many of which are great for first-time investors) could continue to make moves lower. After the market’s latest round of volatility, it may not seem like the right time to get into Robinhood (NASDAQ: HOOD) stocks.
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