After finishing in the black on Friday, markets started this week with additional gains – although year-to-date the S&P 500 has slipped back into the bear territory. The recent high volatility comes in the wake of the Fed’s interest rate hike last week, and the intention to keep rates high as it battles to curb inflation.
It’s hard to tell where the markets are heading right now, but at least according to market expert Ed Yardeni, we’re already near the bottom of the bear market. Yardeni believes that the Federal Reserve is not likely to raise interest rates much further, and that the bad news on interest rates has already been taken into account.
“It seems to be that we’re in a bottoming process. I think that the market has certainly discounted a great deal of what the Fed is going to do,” Yardeni noted.
If Yardeni is right, then investors have an opportunity now to live up the oldest of all investing advice: buy low, sell high. Plenty of stocks fit the ‘bottom fish’ profile; we’ve pulled up two from the TipRanks database, stocks with Strong Buy consensus ratings and about 70% share price declines this year. In fact, the analysts see them both surging over 90% in the coming year. Let’s take a closer look.
Thoughtworks Holding (TWKS)
We’ll start in tech, where the digital consulting firm Thoughtworks brings adaptive expertise to its clients. The firm’s services include digital strategizing, design, and software engineering, which combine to make Thoughtworks a valuable partner for enterprise clients and tech disruptors. The company has a footprint in 17 countries, and among its clients counts such major names as Paypal, Daimler, and Bayer.
For bottom fishing investors, the first thing to know about Thoughtworks is that the stock is down 70% so far this year. The second thing to know is that even though the share price is down, the company has reported a modest sequential revenue gain in each quarter of this year so far.
In the most recent quarterly report, from 2Q22, the company showed a top line of $332.1 million, for a 3.8%…