Thursday, September 03, 2015 1:53:21 PM
By Joel Anderson September 3, 2015 7:09AM
Well, it’s been a long time coming, but we appear to have our correction. After a lengthy bull market, we have a sharp, distinct pull back that has brought things down from the clouds. However, despite the doom and gloom coverage that seems to be flowing in from major media outlets that usually can’t muster much more market coverage than a daily check-in with the world’s worst stock index, there’s plenty of reason to believe that this won’t necessarily extend into a long-term bear market. After five years of massive gains, a pullback is probably a pretty normal, healthy occurrence.
That said, to quote the shrewdest of investors, Warren Buffett, investors should be “greedy when others are fearful.” In the event that this is just a correction, that would make the present an ideal opportunity to buy in and get the best price possible.
Push comes to shove, grabbing good stocks when they’ve been beaten down is a strategy that tends to work out in the long run.
Finding the Value Stocks Falling Through the Cracks
It should also be noted before any suggestion to buy recently falling stocks, there’s a real danger to value shopping. The phrase “catch a falling knife” is frequently used to caution against buying stocks just because they’re cheap. The harsh truth is that some stocks are bad at any price, and letting yourself get drawn in by a low one is an easy mistake to make. Or, to quote Mr. Buffett again, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
That said, a correction like the one we’ve just observed is bound to create opportunities. With the entire market headed downward lock-step, it stands to reason that at least some of the stocks losing ground are only doing so as part of the sell-off and not solely because of issues with the company. Which is, of course, not to say that there's no important issues these companies are grappling with. They wouldn't be seeing shares get beaten down if there was absolutely nothing. It's simply to suggest that the risk-off atmosphere is creating a sell-off that's far larger than those issues might warrant.
So, we’re going to take a look at four small-cap companies that are currently oversold based on their technical metrics, while also getting decent to good marks from analyst coverage. Whether they’re a wonderful company or not is up to you, but the fact is, they’ve gotten hit harder than most in recent weeks, and as markets start to bounce back, they should be well-positioned to benefit.
Daktronics ($DAKT)
Daktronics builds a variety of electronic display systems, including scoreboards, for markets in North America. The company’s 2015 has seen the stock decline over 30% with most of that coming in two big chunks following earnings reports in late February and then again this week.
Daktronics is crashing due to a big miss on revenue in its most recent report, and the company continues to struggle to improve margins in a competitive market.
However, despite dark times, there’s reason to believe this stock could be ready to bounce back. Revenue may have missed recently, but it has posted gains steadily for years. Projections for earnings next year are strong, with a PEG of 0.89, Forward P/E of 11.25, and a P/S ratio of 0.60. The technical data also indicates a stock ready to run, with a 14-day RSI of 26.45 and a price that spent most of August beneath its bottom Bollinger Band.
____________________________________________
- See more at: http://www.equities.com/editors-desk/investing-strategies/technical-analysis/4-potentially-undervalued-stocks-to-take-advantage-of-the-sell-off#sthash.xb0Gwd55.dpuf
DAKT
Recent DAKT News
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 05/09/2024 06:45:34 PM
- Daktronics to Present at Sidoti Small-Cap Virtual Conference March 13-14 • GlobeNewswire Inc. • 03/08/2024 08:00:29 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 02/28/2024 03:39:39 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/28/2024 03:12:35 PM
- Daktronics, Inc. Announces 2024 Fiscal Third Quarter Results • GlobeNewswire Inc. • 02/28/2024 12:30:00 PM
- Daktronics, Inc. to Release Third Quarter Fiscal 2024 Financial Results • GlobeNewswire Inc. • 02/20/2024 07:10:58 PM
- Daktronics to Present at January 2024 Investor Conferences • GlobeNewswire Inc. • 01/11/2024 09:07:52 PM
- Detroit Tigers Unleash Second-Largest Video Display in Baseball from Daktronics • GlobeNewswire Inc. • 12/15/2023 03:00:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 12/05/2023 09:52:18 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/05/2023 03:39:28 PM
- Daktronics, Inc. Announces 2024 Fiscal Second Quarter Results • GlobeNewswire Inc. • 12/05/2023 12:30:00 PM
- Daktronics to Present at Singular Research Best of the Uncovered Conference • GlobeNewswire Inc. • 12/01/2023 08:01:21 PM
- Daktronics to Present at Noble Capital Markets’ 19th Annual Emerging Growth Equity Conference • GlobeNewswire Inc. • 11/30/2023 08:26:13 PM
- Daktronics, Inc. to Release Second Quarter Fiscal 2024 Financial Results • GlobeNewswire Inc. • 11/27/2023 09:40:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/18/2023 05:26:27 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/16/2023 05:12:26 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 10/11/2023 09:01:37 PM
- Form 11-K - Annual report of employee stock purchase, savings and similar plans • Edgar (US Regulatory) • 10/11/2023 04:34:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/15/2023 04:49:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2023 09:20:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2023 09:15:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2023 09:13:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2023 09:10:51 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2023 09:09:53 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/13/2023 09:08:11 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM