3 strong stock

3 “Strong Buy” Stocks Trading at Rock-Bottom Prices

TipRanksMon, October 25, 2021, 6:12 PM



The savvy investor knows that the best time to buy is when a stock is priced low – it’s just the old game of ‘buy low and sell high,’ the age-old advice on how to make money. But markets have been rising lately, even taking some recent fluctuations into account. But with the S&P and the NASDAQ near record levels, it’s hard to tell when a stock is priced low.

The key is just to take them as individuals. The stock market is the world’s greatest real-time experiment in averaging over large mass numbers. The market as a whole can go up, while a few individual stocks are slipping to the bottom. And when a stock hits bottom, as long its basics are sound, it becomes a buying opportunity.

Wall Street’s analysts make their reputations by finding these opportunities, and bringing them to our attention. Prices fall for reasons, but not all of those reasons bode ill for the stock. We used the TipRanks database and pulled up the analyst commentary on three low-priced stocks that have attracted attention for the right reasons.

QuinStreet (QNST)

We’ll start in digital marketing, where QuinStreet, founded in 1999, was a pioneer in performance marketing. The company leverages technology and the direct measurability of digital media to create better marketing and branding solutions for its customers. QuinStreet works with customers in the insurance, personal loan, credit card, banking , and home services industries.

QuinStreet wrapped up its fiscal year 2021 on June 30, and a look at the numbers will show the company’s position ahead of its November 3 release of fiscal 1Q22 numbers. The company reported $151 million in quarterly revenue for 4Q21, up 29% from the $117 million reported in the year-ago quarter. The full-year revenue of $578.5 million was up 17% from FY20’s $490.3 million top line. EPS also grew year-over-year, from 14 cents to 17 cents. On the negative side, the EPS was down from Q3’s 20 cent print. And looking ahead, the company’s Q1 EPS is expected at 16 cents.

While the company’s revenues have shown steady growth, the earnings have not – and that has been the key point for investors recently. The stock is down 31% year-to-date, and down 40% from its February peak value.

5-star analyst John Campbell, of Stephens, takes an upbeat look at QuinStreet, based on the whole picture, writing: “We continue to believe that QNST sits in an attractive buying window given the valuation (~12x forward EBITDA vs. peers ~25x and its past TTM avg. of ~13x), given low expectations/ongoing fears of a pullback in client spend from frothy marketing appetites last year and given our belief that the deck is set for outperformance with the Company just recently posting, what we feel as conservative, new fiscal year guidance. In addition, we continue to like the added optionality tied to QNST’s QRP offering and ongoing takeout optionality.”

In line with his bullish comments, Campbell rates QNST an Overweight (i.e. Buy), and his $26 target price implies an upside of 76% in the next 12 months. (To watch Campbell’s track record, click here)

It’s clear that Wall Street is in general agreement with Campbell’s assessment here, as the stock has a unanimous Strong Buy consensus rating based on 3 positive reviews. The shares are priced at $14.80 and their $25.50 average target suggests a 73% one-year upside. (See QNST stock analysis on TipRanks)

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