It can be very difficult to find companies that are both flying under the radar, and still might have potential for gains. Many times, stocks are off investors’ radar screens for a reason, though there are some hidden gems that could be worth uncovering by those with a high-risk tolerance.
One way to find these underappreciated stocks is by looking at companies that haven’t seen their share prices move higher lately but have observed analysts raising earnings estimates for their stock. This trend could signal that investors haven’t quite embraced the rising estimate story yet, but that the potential for a big move higher is definitely there.
One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is Devon Energy Corporation (DVN - Free Report) . This Banks - Foreign stock has actually seen estimates rise over the past month for the current fiscal year by about 17.9%. But that is not yet reflected in its price, as the stock lost 2.9% over the same time frame.
You should not be concerned about the price remaining muted going forward. This year’s expected earnings growth over the prior year is 160%, which should ultimately translate into price appreciation.
And if this isn’t enough, DVN currently carries a Zacks Rank #3 (Hold) which further underscores the potential for its outperformance (See the performance of Zacks' portfolios and strategies here: About Zacks Performance).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So if you are looking for a stock flying under-the-radar that is well-equipped to bounce down the road, make sure to consider Devon Energy. Solid estimate revisions and an impressive Zacks Rank suggest that better days may be ahead for DVN and that now might be an interesting buying opportunity.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>