Traders say these stocks significantly off their highs look relatively cheap

Traders say these stocks significantly off their highs look relatively cheap

December 23, 2021: Two traders said A few stocks well off their highs present buying opportunities at these levels.

On Tuesday, U.S. stocks bounced back after three trading sessions in decline, with the Dow Jones Industrial Average mounting a 560-point rebound as the government announced new measures to mitigate the omicron outbreak.

One stock still down nearly 20% from its 52-week highs is setting up for an even more significant rebound, Chantico Global CEO Gina Sanchez told CNBC’s “Trading Nation” on Tuesday.

“The demand and rebound in the global economy are not going away,” particularly in metals and mining stocks, which dove sharply after President Joe Biden’s Build Back Better Act hit a snag, Sanchez said.

As coronavirus testing and treatment improve, a gradual economic reopening can keep driving demand for metals and minerals as the transition to clean energy comes back into focus, she said.

“That’s driving further demand for the actual equipment that does all of this, that digs into the ground, and that leads us to Caterpillar,” said Sanchez, who is also Lido Advisors’ chief market strategist.

“Caterpillar has been beaten up, it’s a massive dividend payer, and demand is probably going to be stable if not increasing in 2022,” she said. “We see Caterpillar as an undervalued little treasure that will continue to raise their dividend and will weather the cycles.”

Another major transition could drive gains in a fellow S&P 500 stock, Miller Tabak’s Matt Maley said in the same interview.

Maley said that it was down almost 28% from its 52-week high, AT&T’s stock could benefit from the 5G expansion, looks relatively cheap at seven times forward price-to-earnings, and pays investors an 8.5% dividend yield.

Though concerns are circling about a possible dividend cut, several Wall Street firms have upgraded their outlooks for AT&T in recent weeks, with Morgan Stanley applauding the company’s focus on the 5G rollout and becoming a pure-play telecom provider.

“The thing I like the most on the fundamental side is the fact that they’re cutting back on a huge amount of debt,” said Maley, his firm’s chief market strategist.

“A year ago, everybody was talking about that we were in this big corporate bond bubble. Well, guess what? It’s a lot bigger now,” he said. “It may not burst for a while, but the fact that they’re cutting back on their debt is important.”

While AT&T looks slightly overbought on its chart following the recent upgrades, its moving average convergence-divergence indicator — a momentum gauge that forecasts trend changes — just flashed a positive signal, Maley added.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts | Make Profit Not Waste | Stephen Pratt

Supply chain leaders, including VPs, often find themselves making bets with unknown financial consequences. Having started with largely infeasible plans generated by deterministic “one-number” planning systems, compounded by unexpected supply or demand disruptions, they are forced into last-minute adjustments to meet operational and financial goals.

Intelichain | Revolutionary Supply Chain Planning Solutions | Roei Aviram

Unsurprisingly, today’s supply chain faces numerous issues, including sustainability, technology, global economic and political instability, talent management, and supply chain resilience. Advanced forecasting algorithms and predictive analytics are used in supply chain management to help organizations of all sizes make better decisions by providing insights into what’s going on in their business at any given moment and predicting future trends.

GAINS | Empowering Companies to Make the Right Decision | Bill Benton

Ensuring the right products are in the right place and at the right time is critical for companies also dealing with supply chain constraints and a high degree of variability. Uncertainty has become the name of the game and the only way to effectively optimize inventory through continuous, data-driven assessments, planning, and decision-making.

Extensiv | Creating the Future of Omnichannel Fulfillment | Sheridan Richey

Food Huggers, a consumer brand that designs products to reduce waste at home, may be in an enviable position now but before they found Extensiv Order Manager, managing booming orders and staying on top of inventory was a huge operational challenge. The business has inventory spread across multiple geographically distributed warehouses, with orders received via multiple sales channels, including Shopify storefronts and Amazon.

Chainguard | Making Supply Chain Secure | Dan Lorenc

By late 202, the alarm bells were just starting to ring. Researchers discovered that Russian spies had months earlier burrowed deep into the networks of several U.S. federal networks. The spies, working for Russia’s foreign intelligence service, had first targeted SolarWinds, an IT company whose software helps to remotely manage the networks of thousands of businesses, Fortune 500 organizations and federal government agencies.

Traders say these stocks significantly off their highs look relatively cheap