7 High-Risk Stocks That Could Double or Triple

Buy these discounted stocks ahead of earning season

By Anthony Mirhaydari, InvestorPlace Market Strategist

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It’s no secret that stocks are oversold right now, punished by weeks of negative headlines surrounding China-U.S. trade relations, the specter of additional policy tightening by the Federal Reserve, political machinations between President Donald Trump and the ongoing Special Counsel investigation and the possibility that first-quarter earnings expectations are too hot.

Further weakness looks likely, with the S&P 500 threatening to drop hard below its 50-day moving average before a sustainable low is found.

When that happens, investors should have a buy list at the ready. Consider these 7 deeply discounted names. They are high-risk stocks, with a few suffering existential headwinds. But could carry a high reward.

Here are 7 high-risk stocks that could double or triple:

High-Risk Stocks That Could Double: Express (EXPR)

Troubled fast-fashion retailer Express, Inc. (NYSE:EXPR) looks ready to break out of a multi-month consolidation range. A possible surge could test the highs hit late last year near $11-a-share, which would be a 40%+ rise from here. Management remains cautious, so an upside beat thanks to e-commerce traction could kick off a rally.

The company reports earnings results on May 31 before the bell. Analysts are looking for a loss of two cents per share on revenues of $466 million. When the company last reported on March 14, earnings of 34 cents beat estimates by two cents on a 2.2% rise in revenues.

High-Risk Stocks That Could Double: Ford (F)

Ford Motor Company (NYSE:F) shares are currently breaking higher, rising above a three-month consolidation with a move above its 200-day moving average. That sets up a run to the January highs near $13 which would be a gain of 13% from here. Auto stocks got a lift on Tuesday thanks to comments from Chinese President XI that China plans to significantly lower import tariffs on cars.

The company next reports earnings on April 25 after the close. Analysts are looking for earnings of 41 cents per share on revenues of $37 billion.

When the company last reported on January 24, earnings of 39 cents matched estimates by a 6.9% rise in revenues.

High-Risk Stocks That Could Double: Pier 1 (PIR)

Pier 1 Imports Inc (NYSE:PIR) shares are emerging from a tight two-month consolidation range setting up a run back to the December-January trading levels near the 200-day moving average. That would be a 14% gain from current levels. PIR could enjoy a turnaround here as shares have been spending the last three years flirting with lows near $3.

The company will next report results on April 18 after the close. Analysts are looking for earnings of 19 cents per share on revenues of $537 million. When the company last reported on December 13, earnings of nine cents per share missed estimates by two cents on a 1.4% decline in revenues.

High-Risk Stocks That Could Double: Sears (SHLD)

Sears Holding Corp (NASDAQ:SHLD) shares look ready to bounce off of multi-month support. Fears of bankruptcy following a disappointing holiday season have faded somewhat with a climb above its 50-day moving average. New initiatives, such as selling Kenmore appliances through Amazon, is providing a modicum of good news.

The company will report earnings on May 24 before the bell. Analysts are looking for a loss of $1.51 per share on revenues of $2.9 billion.

When the company last reported on March 14, earnings of $1.69 per share beat estimates by 53 cents on a 27.7% decline in revenues.

High-Risk Stocks That Could Double: Under Armour (UA)

Sportswear maker Under Armour Inc (NYSE:UA) remains in turnaround mode, rising roughly 50% off of its lows last November to push above its 200-day moving average. Shares remain well off of the highs near $54 set back in 2015 as Nike has come back strong against the young challenger.

The company will next report results on April 26 before the bell. Analyst are looking for a loss of five cents per share on revenues of $1.1 billion. When the company last reported on February 13, results matched analyst expectations with a 4.6% rise in revenues.

High-Risk Stocks That Could Double: Fossil (FOSL)

Fossil Group Inc (NASDAQ:FOSL) shares lost more than 95% of their value from the highs in 2013. The smartwatch revolution badly undercut FOSL’s business model. But hopes for a turnaround have helped prices nearly triple off of the low set in November. Telsey Advisory Group highlighted the possibility of improved gross margins in a recent note to clients.

The company will next earnings on May 8 after the close. Analysts are looking for a loss of 82 cents per share on revenues of $539 million.

When the company last reported on February 13, earnings of 64 cents per share beat estimates by 24 cents on a 4% decline in revenues.

High-Risk Stocks That Could Double: Supervalu (SVU)

Worries over Amazon’s efforts in the grocery space — as well as food price deflation — have hit grocers like Supervalu Inc. (NYSE:SVU) hard. But much of the bad news is priced in here, with shares finding support near $14 in a trading range going back to October. Some M&A rumors (possible sale or tie up with Target) have helped SVU as well.

Supervalu will next report earnings on April 24 before the bell. Analysts are looking for earnings of 79 cents per share on revenues of $3.9 billion. When the company last reported on January 10, earnings of 61 cents per share beat estimates by 10 cents on a 31.2% rise in revenues.

Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2018/04/7-high-risk-stocks-double-triple/.

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