7 Beaten-Down Growth Stocks That Look Like Big Bargains Right Now

  • The following beaten-down stocks could rebound due to their massive undervaluation.
  • Dell Technologies (DELL): Dell stock is oversold and its growth potential can’t be overlooked.
  • Cardinal Health (CAH): CAH has likely met resistance and is now in a long term uptrend.
  • Equitable Holdings (EQH): The stock has been oversold back to its pre-pandemic levels, and now stands undervalued.
  • HF Sinclair (DINO): This diversified energy company is already profiting from the global energy crisis, and could continue to grow even more.
  • Crocs (CROX): A highly popular company among teens could start to rebound once pressure on supply and logistics ease.
  • Altice USA (ATUS): The stock is clearly oversold and is likely close to bottoming out.
  • Western Digital Corporation (WDC): This volatile stock could benefit from the cloud storage boom.
Beaten down stocks are bargains for investors
Source: iQoncept / Shutterstock.com

The stock market has been hit hard by the Federal Reserve’s efforts to tackle inflation and the war in Ukraine. As a result, many stocks have plunged below their intrinsic value.

However, these oversold and beaten-down stocks could rebound as investors are unlikely to ignore their massively discounted prices. Even though the broader market is unlikely to recover soon due to the Fed’s efforts to tackle inflation, some stocks are now at bargain prices and will likely be profitable as the stock market starts to bottom out.

Thus, I have found the following seven beaten-down growth stocks that look like big bargains right now:

DELL Dell Technologies $43.30
CAH Cardinal Health $57.74
EQH Equitable Holdings $29.42
DINO HF Sinclair $49.42
ATUS Altice USA $11.15
WDC Western Digital Corporation $59.10

Dell Technologies (DELL)

A Dell (DELL) office in Santa Clara, California.
Source: Ken Wolter / Shutterstock.com

Despite being a significant-tech company for a long time, Dell Technologies (NYSE:DELL) only had its initial public offering (IPO) in late 2018. Currently, the company is still only 40% above its IPO after a 34% decline in the past four months. In addition, Dell’s market capitalization of just $30 billion does not reflect its annual revenue and net income of $101 billion and $5.5 billion, respectively.

Moreover, Dell’s current price-to-earnings (P/E) ratio of 6.40 is also a strong buy signal. Of course, Dell can decline more in the short term due to its unsatisfactory first-quarter earnings. However, even with the current earnings, the company is still undervalued, and it is likely to be profitable in the long term.

Cardinal Health (CAH)

Cardinal Health (CAH) sign with bushes in front of it
Source: Shutterstock

Next on our list of beaten-down stocks is Cardinal Health (NYSE:CAH). The company has seen a prolonged decline of more than 51% before meeting resistance. The decline lasted from 2015 to 2019, and it only bottomed out in early 2019.

The stock has been slowly recovering for the past few years, and it has also resisted the current bear market. However, Cardinal Health’s net income this quarter is still unsatisfactory, which is likely the reason for the stock’s continued downturn. The likely culprit is inflation and supply chain constraints which have driven up operating costs for the company.

Nonetheless, the company is still on a solid footing. In terms of revenue, the company has been in a stable long-term uptrend since 2015. The company ended the latest quarter with an annual revenue of $176.8 billion, a year-on-year (YoY) growth of 14.16%. Moreover, the pharmaceutical and healthcare industry has remained resilient with strong consumer demand. Therefore, I expect CAH to continue its long-term recovery.

Equitable Holdings (EQH)

Equitable Holdings (EQH) company logo icon on website, Illustrative Editorial
Source: Postmodern Studio / Shutterstock.com

Equitable Holdings (NYSE:EQH) is a financial services and insurance company founded in 1859. The company only had its IPO in May 2018 and hasn’t had as much growth compared to the rest of the market. Moreover, the recent stock downturn has dragged the stock prices to pre-pandemic prices.

In addition, the company has shown robust financial health. In the latest quarter, Equitable Holdings had a YoY revenue and net income growth of 242.% and 138.6%, respectively. Thus, with the company’s fiscal performance in mind, I believe EQH will likely recover in the near future.

HF Sinclair (DINO)

A photo of a large oil ship on water
Source: Shutterstock

HF Sinclair (NYSE:DINO) is a diversified energy company. The stock fell more than 77% from its all-time high in June 2018 and has failed to recover its value above that level. However, the recent energy crisis has made the company profitable again. The stock has also started a strong recovery, up 151% from its bottom in 2020.

The war in Ukraine has also exaggerated the energy crisis. If European countries decide to stop importing energy entirely from Russia, the situation will get even worse.

However, companies such as Sinclair are set to profit from any form of an energy crisis. Of course, they have already started to do so. Sinclair’s net income became positive this quarter, with a YoY growth of 8.11%, and its YoY quarterly revenue grew at 112.87%.

With this rapid growth in such a short amount of time, I believe that DINO stock is likely to continue recovering. It could even break its all-time high if European countries completely stop importing energy from Russia and put pressure on other sources. DINO stock could easily and swiftly leave this list of beaten-down stocks.

Crocs (CROX)

The front of a Crocs (CROX) store in Chiang Mai, Thailand.
Source: Wannee_photographer / Shutterstock.com

Crocs (NASDAQ:CROX) is a manufacturer of its brand of foam clogs. The stock seems oversold as its value has declined over 70% after the company announced its acquisition of HEYDUDE for $2.5 billion.

Crocs remains among the most popular brands for teens despite the company’s recent downturn. Crocs’ recent earnings report was unsatisfactory due to its net income decline. However, its P/E ratio remains low, and the company’s high revenue growth can still make it profitable.

Once supply chain disruptions ease, CROX stock will likely deliver a strong recovery from its current downturn.

Altice USA (ATUS)

 In this photo illustration the Altice USA (ATUS) logo seen displayed on a smartphone
Source: rafapress / Shutterstock.com

Altice USA (NYSE:ATUS) is a cable television provider. The company has declined more than 75% since May 2021, and I believe it is a good time to buy the stock.

Although the recent earnings result was far from satisfactory, the company still remains undervalued. The deep decline of the stock since May is also showing signs of bottoming out as ATUS has bounced above $10 per share. Moreover, the P/E ratio of ATUS of 5.45 is also an indicator that investors are unlikely to ignore.

Nonetheless, ATUS stock is still risky due to the company’s poor performance. Thus, I don’t recommend any heavy investments.

Western Digital Corporation (WDC)

Front of a Western Digital (WDC) building in Malpitas, California.
Source: Valeriya Zankovych / Shutterstock.com

Western Digital Corporation (NASDAQ:WDC) manufactures computer hard disk drives and offers a variety of data technologies. Despite the company’s recent downturn in net income, I believe it could recover due to the rising demand for data centers.

Western Digital is still in a decline of 50% since its all-time high in 2014, and it has had multiple ups and downs since. WDC is quite volatile, but the stock is likely to rebound once the demand for data storage picks up more growth.

Currently, the stock is in a short-term uptrend. However, I believe that WDC could be more profitable as demand for data products are likely to remain high due to supply issues.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/7-beaten-down-growth-stocks-that-look-like-big-bargains-right-now/.

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