Investors can seek advice from Wall Street experts in identifying stocks in a certain range, and recently, analysts have been very active, selecting cheap stocks that are undervalued and poised for significant gains.

Once in a while, every market expert will advise you against trying to “time” the market, and it’s true, timing is still crucial for success.

Investors must invest in falling prices, and in order to do so, they must be aware of the low points in the market. This doesn’t always mean low in absolute terms, but rather low in comparison to a stock’s most recent historical performance.

Today, we looked for two such cheap

stocks that have each lost more than 50% of their value in the past year but also have strong upside potential and a Buy recommendation from Wall Street analysts. Here are some examples.

Company CS Disco (LAW)

We’ll start with CS Disco, a software provider that puts data analytics, cloud computing, and artificial intelligence (AI) at the service of the legal industry. Solutions for handling legal requests, enhancing the discovery procedure, evaluating documents, and developing cases are just a few of the services offered by CS Disco.

The company offers a scalable system tailored for legal concerns, to law firms, corporations, and educational institutions.

Although there is always a demand for legal services in our highly litigious society, LAW shares have struggled over the past year, falling by almost 76%. The company’s shares have fallen as quarterly losses have been more severe.

Last summer, management reduced full-year revenue expectations for 2022 by 11% at the midline and forecasted a larger-than-expected annual net loss for ’22.

David Hynes, a 5-star analyst at Canaccord, acknowledges the company’s challenges and states, “With Disco, we’ve reached the point where the stock is simply too cheap for the potential of this business. This is a stock that has gone from the next ‘giant’ to a ‘problem child’ in just 18 months. However, a lot of it seems to us to be the growing pains of a still-small business. Some of this has been self-inflicted, specifically that the model and team don’t provide enough forward-looking indicators to hang your hat on.

Whatever the reason, we believe it’s time to be more positive about the stock given that LAW shares are selling at about 1.0x EV/R on C2023E. Improved growth should lead to renewed trust, and if that’s the case, there’s nothing to suggest this stock shouldn’t be at least a 3–4x EV/R stock, pricing LAW at $11–13 based on current 2023 forecasts,” Hynes continued.

Therefore, it shouldn’t come as a surprise that Hynes ranks LAW as a Buy. Not to add that his $12 price target places a 55% upside possibility.

The shares are currently trading for $7.75, and their $11.56 average price objective suggests a possible increase of 49% over the following 12 months.

The Turtle Beach Company (HEAR)

The company Turtle Beach, which produces gaming equipment, is next.

Although computer game software developers frequently make the news, the games wouldn’t exist without the hardware that corporations like Turtle Beach design and produce, including headsets, controllers, simulation systems, microphones, and other acoustic equipment. Since its founding in the 1970s,
Turtle Beach has become renowned for its headphones and console gaming sounds.

However, over the past year, shares of Turtle Beach have become one of the cheap stocks, decreasing by 53%.

The company’s earnings and profitability rapidly declined at the end of 2021 and into 2022, changing from quarterly net gains to losses, and the share price started to plummet as a result.

By the middle of the summer, it was obvious that demand, which had risen during the epidemic era when lockdowns kept people at home and made home-based entertainment alternatives like computer gaming more popular, was down and not rebounding, or at least, not rising any time soon.

Turtle Beach looked into the likelihood of a buyout in 2022 in addition to the challenges facing the gaming industry, but by late summer those plans had failed.

When the corporate board officially decided not to sell, at least for the time being, in August, shares became a cheap stock, being down by about 30%. all at once.

For Roth Capital, analyst Sean McGowan writes on Turtle Beach and claims that “headwinds are likely to lessen” moving forward. He provides the following information to support his claim: “Aside from the general market selloff, we think there are two main reasons for HEAR’s decline: 1) Surprising weakness in the video game sector, which results in sales shortfalls and compression of stock prices across the board; and 2) An expensive proxy fight and futile sale attempt prompted by an activist investor. Over the following 12 to 18 months, we anticipate both of these variables to diminish, causing HEAR to rise to at least $18.”

The company has a Buy rating from McGowan, and his price target of $18 indicates a gain of around 97% over the next year.

In general, Wall Street analysts seem to have a more optimistic outlook on HEAR shares than do investors; the stock has received 5 recent analyst reports, with a 4 to 1 ratio recommending buys over holds for a consensus rating of “Strong Buy.” The average price objective of $11.70 indicates a 28% rise from the current share price of $9.14.

For More Stocks And Investment Related News, Click Here.