Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

1 Oversold Stock Poised to Bounce Back in the Second Half of 2022

Stock Markets Mar 15, 2022 09:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 1 Oversold Stock Poised to Bounce Back in the Second Half of 2022

There are a growing number of bargains on the S&P/TSX Index these days, with the broader market correction worsening ahead of rate hikes. Indeed, geopolitical uncertainties could sink the markets lower such that the S&P 500 finishes the year in the red. In any case, investors should focus on what they do best. Not trying to predict the outcome of unpredictable macro events, but to value individual companies and purchase those that have a decent margin of safety. In times like these, when there’s a considerable amount of fear and volatility, investors may see more stocks priced well below their intrinsic value. Such stocks should be bought, even if it feels like being in the market is to fall between a rock and a hard place.

In this piece, we’ll take a closer look at one of the best value stocks worthy of picking up going into the latter half of March. Markets are severely oversold, and some stocks seem priced as though there’s a high chance of a recession striking in 2022. The reality of the situation is the economy looks robust, with Canada posting around 337,000 jobs in the month of February. Unemployment has not been this low since before the COVID pandemic struck back in 2020. Although some consumers may be feeling the pinch of inflation, signs suggest that the economy is firing on all cylinders and could be ready to take the blow of more rate hikes than expected.

Risks elevated; valuations dropping As the Canadian economy continues out of the COVID recession depths, the real question is whether Ukraine-Russia tensions will send Canada right back into a recession after posting some of the most intriguing employment growth since the pre-pandemic days. Arguably, the likelihood of recession is growing, with the yield curve at risk of flattening and inverting at some point over the next few weeks. The inversion of the U.S. yield curve is a top recessionary indicator. I don’t think that a flatter yield curve should be a source of panic for investors who are on the right track.

In this piece, we’ll look at two incredibly cheap stocks that I think can weather another few rounds in the ring with a Mr. Market who’s been throwing haymakers.

Parkland (TSX:PKI) Fuel Shares of fuel and convenience retailer Parkland Fuel (TSX:PKI) has been under pressure for well over a year now, down 6% year to date and 31% from its pre-pandemic all-time high of $48 and change per share. With the acquisition of premier frozen food firm M&M Meat Shops, consumers have more reasons to stock up the next time they fuel up at the local Parkland Fuel-owned gas station.

The $5.2 billion company has plenty of baggage, and it’s arguably not in the best shape to adapt to the rise of EVs, which could be accelerated the shocking spike in oil prices. Fuel prices are rocketing higher, and although that’s not necessarily a negative for Parkland, it could increase the strength of longer-term headwinds. In any case, I think Parkland Fuel stock is too cheap to ignore, with the Street-high price target of $55 pointing to over 50% gains to be had from the stock.

The post 1 Oversold Stock Poised to Bounce Back in the Second Half of 2022 appeared first on The Motley Fool Canada.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

This Article Was First Published on The Motley Fool

1 Oversold Stock Poised to Bounce Back in the Second Half of 2022
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email