This Week’s Bargain Stocks to Add To Your Shopping List for the Holidays!
Investors always look for cheap stocks, regardless of the market cycle, be they bullish, bearish, or trendless.
After all, who doesn’t enjoy a good deal? But first, a quick recap of the markets as we head into 2023.
While US stocks are off their lowest levels this year, we are finishing 2022 with equities at their lowest levels since March 2020, with tech and growth stocks among the hardest-hit sectors, and now, with the Holiday Season nearly upon us,
I have three bargain stock ideas to make you feel like you’ve gotten a deal!
Related Article To Read: Hot Stocks to Buy for 2023 With High Yield
Rivian (NASDAQ: RIVN)
In 2022, the stock price for Rivian decreased by a staggering 80%, which is at all-time low levels.
But don’t dismiss it just yet. In the third quarter, the electric-vehicle manufacturer was able to create a significant total of more than 7,300 EVs, and its “second manufacturing shift [at its primary factory] recently began producing automobiles.”
Furthermore, the manufacturer has received over 114,000 preorders, which does not include its lucrative contract with Amazon.
Add in the fact that Rivian has a partnership agreement with Mercedes-Benz, and that its R1T pickup vehicle was selected “Truck of the Year” by MotorTrend, and it’s evident that Rivian has a bright future.
While a slew of bad news early in 2022 really battered the stock price of Rivian, a growing number of analysts are now starting to see Rivian’s value at current oversold levels and are now starting to get a few buy ratings. I see this as a potential turning point for RIVN, and could finally be the start of a long overdue recovery.
The Costco Wholesale Corporation (NASDAQ: COST)
Costco is not the worst loser in 2022. In 2022, COST stock is “only” down 18%. However, it is down 24% from its 52-week (and all-time) peak earlier this year. Costco, like many other retailers, is under pressure from investors concerned that the consumer is losing steam.
Furthermore, retail sales for November were lower than predicted. Analysts believe the holiday season will be more fragile than projected.
This year, despite all the fears mentioned, the company has outperformed in terms of earnings, and revenue is rising year over year.
Still, investors should keep an eye on subscriber retention, and so far, the warehouse club has had no issues with this. If this trend continues, COST stock will be able to justify its relatively strong valuation.
Because if customers keep their membership, they are more likely to continue shopping at Costco and thus continue to drive revenues for the company.
While not really at basement-level prices, COST currently sits near its price support levels, making it an attractive entry point for investors.
Carvana (NYSE: CVNA)
Many of the market’s high-flying momentum stocks were rising six months ago, trading at all-time highs and exhibiting significant levels of positive investor sentiment.
This year, many of those stocks have seen a sharp drop in their valuations, wiping out all of their profits since the March 2020 COVID-19 bear market. Carvana, the online used car-shopping platform, saw its stock rise tenfold from its COVID-19 lows, spurred by surging used car prices and changing consumer behaviors that favored online purchasing over visiting physical dealerships.
CVNA, like many of its e-commerce contemporaries, has been devastated by the market downturn this year.
Concerns have grown over the company’s rising debt levels as it pursued an aggressive growth strategy while paying exorbitant prices for its expanding vehicle fleet.
However, positive investor sentiment has started to rise this month, despite the stock falling nearly 90% from its peak and setting a new 52-week low.
With the price playing at oversold levels, I see this collapse as exaggerated, and now see value in CVNA shares, as it now may be poised for a rebound.
Related Article To Read: 12 Ideal Equities to Consider for 2023
Just a Caveat
Stocks are beaten down and at bargain prices for a reason and stocks that declined significantly in price, are often due to negative news or market conditions.
Some investors may avoid beaten-down stocks for a few reasons, with the risk that prices may continue to decline, potentially leading to significant losses for investors.
This is in stark contrast to my article earlier this week, suggesting buying Lockheed Martin (NYSE: LMT) even if it is already at relatively high valuations, owing to its price momentum and other bullish factors.
But hey, even if things don’t work out buying these stocks at a bargain, at least you didn’t break the bank on those other overbought shares!
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