Start the New Year with a Bang: Two Beaten-Down Stocks to Consider
As the confetti settles and the champagne bottles are cleared away, many investors are looking to kick-start their portfolios in the new year. With a plethora of stocks to choose from, it’s easy to feel overwhelmed. However, one savvy approach is to focus on stocks that have recently taken a hit, as they can offer incredible buying opportunities.
Electric Dreams: Nio’s Bright Future
Nio, the electric vehicle (EV) company, has faced a tumultuous year, with its stock plummeting 52% in 2024. But don’t let that deter you – the company’s future remains bright. Despite the decline, Nio’s customer demand is thriving, with a 73% year-over-year increase in vehicle deliveries in December 2024. In fact, the company delivered an impressive 221,970 vehicles in 2024, a 39% increase over the previous year.
Nio’s expansion into new markets is also a promising sign. The launch of the L60, a mid-size SUV, has been met with enthusiasm, with 10,528 deliveries in December alone. Furthermore, the company’s financials are moving in the right direction, with a 10.7% gross margin and positive free cash flow in the third quarter of 2024.
Oil Rush: Devon Energy’s Hidden Gem
Devon Energy, the oil exploration and production company, has seen its share price drop by almost 28% in 2024. However, this decline presents a superb buying opportunity. The company’s acquisition of Grayson Mill Energy has added assets in the Bakken region, creating opportunities for cost synergy generation. Moreover, management’s decision to prioritize debt repayment and share buybacks has improved the balance sheet.
Devon Energy’s core assets in the Permian region have also seen significant improvements in oil well performance and productivity. With Wall Street analysts expecting average free cash flow of $2.9 billion in 2024-2026 and a market cap of just $21.5 billion, Devon Energy looks like an excellent value.
Don’t Miss the Boat
If you’re looking to add some excitement to your portfolio, consider Nio and Devon Energy. Both companies have strong fundamentals and are poised for a rebound. And, if you’re worried about missing out on the next big thing, our expert team of analysts has identified three incredible companies that are about to take off. Don’t wait – seize the opportunity now!
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