![]() During this timeframe, the boom in special purpose acquisition stock (SPAC) IPOs played a major role in its strong operating performance.Įven so, while the salad days for SPACs have long since passed, that’s not to say “the party’s over” here. Its big jump in earnings between 20 isn’t set to repeat itself in 2022. Trading for just 7.53x earnings, I’ll concede there’s a good reason why it’s firmly in the cheap stocks category. Why? Although still up substantially over the past two years, it continues to be a bona fide value stock. This may be an opportunity for those who missed its initial hot run. At around $35.00 per share today, Donnelley Financial Solutions is down more than 30% from its high. ![]() More recently, though, they’ve taken a dive. Shares in this financial services firm, which provides compliance and communication solutions for publicly-traded companies, were at one point up more than 10x from their 2020 lows. Knocked to single digits at the start of the pandemic, DFIN stock has gone on an incredible run since mid-2020. The situation with Geo is a bit more iffy, yet assuming CoreCivic continues to de-lever, and uses its profits to buy back stock/pay out dividends, this stock (at around $9.65 per share today) could make a serious move back toward prior price levels. That said, there’s more backing up the bull case than just the fact Burry holds it in his portfolio.īoth companies continue to generate most of their revenue from either state and local contracts, or from contracts with the Department of Homeland Security, which isn’t affected by the order. CXW and GEO both remain big holdings of Burry. At least, that’s what contrarians such as Michael Burry (of “Big Short” fame) are banking on. However, there is reason to believe the crowd has prematurely declared “game over” for the space. Both names have tried, but so far have failed, to make much of a recovery. It was at first due to concerns about a crackdown on privately-run prisons then, by Executive Order President Joe Biden’s Administration phasing out their use on the U.S. My talk of avoiding “value traps” notwithstanding, I’ll admit that shares in private prison operator CoreCivic have been a bit of a value trap over the past few years.ĬXW stock, along with its peer Geo Group (NYSE: GEO), have seen big drops since the late 2010s. ![]() Discovery Communications (NASDAQ : DISCA, DISCB, DISCK).Donnelley Financial Solutions (NYSE: DFIN).Trading at low multiples, there’s plenty of treasure to be found with these cheap stocks: So, whether you’re bullish on the “value rotation” carrying on, or you simply like to focus on stocks with less premium valuations, what are some bargain basement names worth a look? These seven should be on your watchlist. They also span across multiple sectors, from consumer staples to financial services to tech. These plays range from widely-followed mega caps, all the way down to more under-the-radar small cap stocks. However, even in today’s still-pricey stock market, there are quite a few value plays to consider. This is usually due to mediocre management, poor prospects or some sort of other negative factor that isn’t apparent when you stumble upon it on a stock screener. ![]() That is, a stock that’s cheap, yet stays cheap. Not only that, many of the “cheap” (in terms of valuation) stocks are names that have a high risk of becoming value traps. But as major indices like the S&P 500 continue to trade at elevated valuations, it remains difficult to find cheap stocks. ![]() With the stock market’s overall drop year-to-date, you may be on the prowl for some bargains. ![]()
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