If you happen to like bargain-shopping, there is definitely no scarcity of shares to think about proper now. The expansion-oriented Nasdaq Composite (NASDAQINDEX: ^IXIC) is down greater than 16% 12 months to this point, and at the moment sits practically 20% under its November peak. In that it is a composite of all Nasdaq-listed names, which means a few of its constituent shares have accomplished a lot, a lot worse.
In just a few of these instances, nonetheless, the drubbings are overdone. Here is a have a look at three of the Nasdaq’s most beaten-down tickers primed to bounce again ultimately, and doubtless sooner than later.
MongoDB
MongoDB (NASDAQ: MDB) might not make an thrilling product, however that does not imply it isn’t an thrilling firm… from an investor’s perspective. Final 12 months’s high line of $874 million was 48% higher than 2020’s income, and analysts are modeling gross sales progress of greater than 34% this 12 months.
Picture supply: Getty Pictures.
Higher nonetheless, the database options firm is inching towards precise profitability. At its present tempo it ought to work its method out of the pink someday in 2025, or maybe even sooner if its fourth-quarter outcomes are any indication. Traders have been anticipating a loss on the order of $0.20 per share, however MongoDB solely reported a per-share lack of $0.09.
The beat helped, to make certain. Shares bounced practically 19% on Wednesday, the truth is, in response to the stable fourth-quarter print reminding traders simply what a powerhouse this firm is. Even with the large acquire, although, MongoDB continues to be buying and selling greater than 40% under its late-December peak. That makes it a really juicy prospect now.
DraftKings
If you happen to’ve been holding tabs on DraftKings (NASDAQ: DKNG), then you definately seemingly know CEO Jason Robin just lately tweeted: “If you happen to bought #DKNG in the present day, simply remember that my crew and I are on a mission to make you remorse that call greater than some other determination you have ever made in your life.” The day in query was Tuesday, when DraftKings inventory fell a comparatively modest 4%, however capped off what’s turn out to be a 73% pullback from September’s highs. Yikes.
Veteran traders will acknowledge the theatrical rhetoric as one thing a pissed off CEO would say when his firm is doing every little thing proper, but none of it stops that firm’s inventory’s rout. The factor is, Robin may very well be fairly proper.
Whereas it is clearly a long-term undertaking, the important thing to DraftKings’ restoration is the upcoming progress of the net sports activities betting market. It is solely legalized in about half of U.S. states proper now, and DraftKings is barely at the moment licensed to supply its sportsbook app in 17 of these states. And, even the place betting on sports activities is now authorized, the enterprise is clunky, and plenty of shoppers stay uninformed about their choices.
All of that is altering, although. One other handful of states are at the moment contemplating laws that might legalize sports activities betting of their jurisdictions (which in fact generates tax income), holding the well-established legalization streak alive. And, as Ark Make investments’s Nick Grous just lately commented of the legalization motion’s momentum, “[T]he deal with for on-line sports activities betting might scale 10x from roughly $18 billion to $180 billion.” That is enormous.
Zebra Applied sciences
Lastly, add Zebra Applied sciences (NASDAQ: ZBRA) to your listing of beaten-down Nasdaq names to purchase earlier than the market figures out it made a significant mistake.
It’s possible you’ll be extra acquainted with the know-how firm than you understand. Zebra makes quite a lot of specialised technological merchandise starting from handheld computer systems to printing provides to robots that may mechanically choose and pull shoppers’ on-line orders of products. If it includes a barcode (or can), Zebra can deal with it. It is even acquired options for monetary establishments, the truth is. Just some days in the past, Wisconsin’s North Shore Financial institution tapped Zebra to streamline in-branch personnel’s routines.
All of its wares are in demand, even when they are not essentially cutting-edge stuff. That is why gross sales progress is holding fairly regular from one 12 months to the subsequent, projected to enhance about 6% this 12 months in addition to subsequent 12 months. Earnings are rising at a barely quicker clip.
This dependable progress hasn’t prevented the inventory from sliding 36% since late December, working into new 52-week lows within the course of. Now priced at lower than 20 occasions this 12 months’s projected per-share income, although, a rebound could be within the offing.
The kicker: Zebra Applied sciences hasn’t didn’t high any quarterly earnings estimates for a few years now.
10 shares we like higher than Zebra Applied sciences
When our award-winning analyst crew has a inventory tip, it may pay to hear. In spite of everything, the publication they’ve run for over a decade, Motley Idiot Inventory Advisor, has tripled the market.*
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James Brumley has no place in any of the shares talked about. The Motley Idiot owns and recommends MongoDB and Zebra Applied sciences. The Motley Idiot has a disclosure coverage.