Interesting Zacks (buy) rec for AOC.
Zacks
By Zacks Equity Research March 16, 2015 12:33 PM
Divergent monetary policy paths between the U.S. and the Eurozone, oil prices touching 6-year lows, and speculation surrounding when the Federal Reserve will tighten its monetary policy are rife in the markets, bringing in fresh bouts of volatility every day. Such volatility usually translates into frenzied trades by investors, as every little movement in a company seems to have huge implications for its future. Well, this is not necessarily so.
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Time and again, the herd mentality of investors comes into play and they dump a beaten down stock simply because that seems to be the common trend. However, investors should take a hard look at whether the market has exaggerated the bad developments of a company before dismissing these beaten-down stocks.
For instance, certain stocks trading near their 52-week lows are, at times, windows of opportunity for patient investors, and offer huge return potential. Here we offer three such stocks that have been out of favor with investors lately, but have promising future prospects coupled with a great Zacks Rank.
Beaten Down Stocks to Buy Now
These stocks have tumbled over the past due to an assortment of reasons, be it company-specific or macroeconomic, and stand in sharp contrast to the S&P 500’s 11.5% gain over the same time frame. However, these companies’ fundamentals and future prospects still shine bright, and the low valuation serves as the perfect opportunity for investors to jump in and ride the anticipated growth. And to top it off, all these stocks sport a solid Zacks Rank, thus we recommend buying these angels who seem to have fallen from grace.
Africa Oil Corp
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1.57-0.03(-1.87%)
OTC Markets2:20 PM EDT
Africa Oil Corp. (AOIFF)
The oil and gas exploration and development company has lost 79.7% in the past year, as oil prices continue to plummet on oversupply concerns. However, the company has a number of short-term growth drivers at present.
The company has made several oil discoveries in recent times, which never got factored in the share price. It has 13 basins open for exploration in the coming 18 months, which can prove to be a strong boost for the company’s stock price. The East Africa oil exploration industry is an emerging market, and efforts are underway to resolve infrastructure issues and make way for exports to international markets.
Moreover, the sustained weakness in oil prices is actually a reason to go on the offensive in the industry. It’s doubtful that oil and natural gas prices will continue their trend for an extended period of time, hence any bounce back would represent a catalyst for this space.
The stock has been seeing positive estimate revision activity over the past month, as the current year loss consensus estimate has narrowed 17.6% over the same time frame.
Current Price: $1.59
52 Week Low: $1.54
Zacks Rank #2 (Buy)
