I like oversold stocks with good fundamentals that tumbled a lot. This is where I know I can get my hands on a stock that has a chance of a good rebound.
Coherent (COHR), a listed stock in Nasdaq may be one of them.
Coherent is a stock that engages in the design, manufacture and service of lasers and related accessories. Their products are used in microelectronics manufacturing, medical diagnostics, and therapeutic medical applications.
4 Reasons why I like this stock:
1) It has tumbled down from $329 early start of the year to today price of $152. 50% Great US Stock Discount!
2) Looking at the Earnings results, this stock shows a good increase in earnings this year with a 135% increase in Earnings per share (EPS). EPS Quarter to Quarter increases by 53.20%. These are quite good results.
The future EPS is projected to increase by 17.50% over the next 5 years, which is a pretty decent growth.
3) Coherent Forward P/E ratio is at an amazingly low 9.22 multiple. This is very low compared to even S&P 500 P/E ratio. This means that this stock is very cheap.
4) Coherent Long term Debt to Equity Ratio is low at 0.35. COHR appears to have made good use of debt, producing operating cash levels of 0.71x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Overall, I think given that a lot of Nasdaq tech stocks are already at a high price, this is one stock that is amazingly low in price and valuation, with a strong growth rate shown this year with good balance sheet and low debt!
I am aiming for a first price target of $167-$170, with a second price target of $195-$200!
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