Historic Buying Opportunity (Earnings Is Changing Everything for These 5 Stocks)

It was a down summer for these five stocks, but a strong earnings report could have that rebound popping very soon. Joining us today is Market Feed analyst [music] Thomas Hughes with a list of five stocks in five different sectors that were all down significantly, but just had some really strong indicators in their earnings report over the last couple of weeks. Thomas, it has been such a big rebound this earning season. Again, we had a huge summer slump where I know lots of investors were getting concerned about many different names in their portfolios, but there seems to be a nice rebound happening really across the entire market right now. >> Yeah, what it looks like is just uh kind of a wait and see period where the market was waiting for some stories to be validated. Uh led to a lot of price weakness. Uh the summer swoon was pretty deep. It was pretty hard to watch in a lot of cases. Uh the S&P moved pretty much sideways, but a lot of stocks didn't. They were they were down pretty hard. But what we're seeing in these reports is just the affirmation and validation of these long-term stories which is just putting some uh some impedance back in the market. And now we're seeing uh in some cases short covering but also accumulation and institutional involvement and retail traders getting involved as well. >> Yeah, let's talk about that new overall market high we hit last week. Uh do you think that this earning season has a lot to do with that? >> Yeah, it's it's the same story. Um all the headwinds and macroeconomic concerns aside, uh the earnings picture was still robust. The Q2 results were way better than expected like more than double the forecast at the beginning of the season. Ford outlook is still pretty firm. It is pretty centric in big tech and AI um specifically in the companies that have emerged as AI critical uh but also broadening into some blue chips into some small caps. So I think that generally speaking the market rotation still in play, broadening market rally idea still in play. So it's looking pretty good for the market right now. >> All right. So before we dive into these names you have for us today, what do they all have in common? What's the common story here? >> That long-term story where the market's kind of been mispricing the potential versus the near-term headwinds. Near-term headwinds have given them, you know, reason to sell off, but now we have some values. A lot of them are showing strong support at these critical levels with improving long-term outlooks and and catalyst in the future. >> These five stocks that you're going to share with us today certainly have that robust earnings report that's helping to lead the market higher and giving some more confidence in these names, too. But they're not the only five names. There's quite a few different stocks that were really down throughout the summer that are now starting to see a nice rebound after a strong earnings report. So, we have a whole another article on our website covering another five stocks the market rewarded after strong earnings results. We're seeing a lot of that happening right now. If you want to explore further down that rabbit hole of all of these stocks that had some incredibly strong earnings and are seeing the benefit from that, scan the QR code, click the link in the description. and you can get that premium article for free because you are a YouTube viewer right now on marketbeat.com. Okay, Thomas, let's get into your first stock that you are looking at after earnings. This one was down quite a bit like a lot of the names we're going to talk about, >> right? That's Symbotic. Symbotic is making automated warehouse systems primarily for Walmart, but also for Amazon and some other big names. Its revenue growth has has been good. it's been executing on its on its on its backlog and it's been improving its earnings and you know yet the stock price has sold off. I think a lot of that concern is due to customer concentration but what we're seeing in uh in the results now is that it's expanding its customer base while deepening penetration expanding verticals really being you know validated by its use. It's green box um deal which is to provide these warehouse as a services like on an ondemand basis for smaller companies is also starting to pick up providing um higher margin business are all strengthening the long-term outlook for earnings uh because right now with the the massive deployments and trying to scale the business it's kind of a cash intensive um phase of the business so the margins aren't quite as strong as they could be but the long-term trajectory the long-term opportunity is for them to shift from um deploying ing hardware to services and software upgrades which is the the higher margin business. So we're seeing some of that in the report as well with margin starting to strengthen and that's all just kind of driving the stock price action and so now what we're seeing is some bottoming in the market that's kind of being echoed in analyst and institutional action which you know suggests you know downside risk is being limited. We may still see some volatility in the near near term. Uh but we are establishing a base of support looking ahead towards that long-term growth, that long-term margin improvement in cash flow. Let's just look at the chart on this one because it is a little bit ugly. That volatility you mentioned is what we're seeing in this post earnings few days where we saw that really big jump right after earnings and then it lost those gains uh almost right away. What does that tell you looking at that near-term action that we saw just in the few days after earnings? But also uh I love your analysis on what this chart has been doing for the last six months to a year. It it's a lot of red right now. >> Yeah. So what we see now is just the market kind of establishing that base of support. There is some volatility. Old hands are cutting their losses. New hands are establishing positions. Uh but we are showing support in in the middle of this long-term range um at or above the long-term moving average. Uh so I would expect to see the market continue like to move sideways potentially volatily in the near to medium term but still to establish that strengthening base and eventually revert to a more bullish posture and then to begin moving higher possibly by the end of the year but definitely in 2027. >> All right, let's talk about that analyst coverage a little bit more for this one too. Uh a little bit of a mixed bag of the analyst reviews. We've got some analysts who are saying it's a strong buy, moving their price targets higher. At the same time, some other analysts saying this is a strong sell. Get out of this name. What do you think about that mixed reaction? >> Well, that's just the the bifurcation in the outlook where we're we're focusing on in one case the near-term headwinds and in the other the long-term opportunity. The real telling factor though is the consensus targets and the trends. And what we see in the trends is steadiness and the coverage firming in the price targets and a solid 60% upside indicated right now. So, you know, provided we get a catalyst which could come in the upcoming reports, uh the stock price upside could be could be pretty aggressive. Did we get that catalyst that we're looking for this report at all? Was there anything in this report that just came out last week that has uh investors excited that has the potential to be a catalyst to move this stock higher before that next quarterly report? >> Uh the news does play into the catalyst just showing the company executing, accelerating deployments and building its backlog. Right now the backlog is 10x the projected annual revenue which is enormous in this scenario. All they have to do is is to deploy the systems to make the money. So, if they can execute on deployments, then they're going to start accelerating their revenue and their profitability timelines, and that will definitely be a catalyst for share prices. >> All right, let's move on to the second stock on your list of down stocks that are seeing a little boost after earnings, and this one is down significantly, and this is one of the furthest falls on the charts. >> Yeah, and this is Oaklo. Oaklo has uh definitely seen a pretty massive stock price decline. That's the function of the markets pricing in the potential, seeing how long it is until that potential is realized and then pulling back to reality. But the reality today is that it has transition to revenue. It's still very small. Uh but the quarterly revenue was just over a million dollars. That's inc, you know, tiny, but better than expected and just proving that the transition from being a a pure play pre-revenue company to being a revenue generating company has happened. Uh looking forward, we're expecting revenue to ramp exponentially over the next few quarters. Uh we're going to see the current revenue stream, which is um isotopes, uh ramp by the end of the year and then definitely into next year. Uh it's actually a three-phase, a three-pillar growth strategy where right now it's the isotopes uh starting next year there's going to be fuel production and fuel recycling. And then in two to three years there's going to be the deployments of the small modular reactors. All three of those things play into that that growth outlook where we're going to see revenue ramping from like the millions today to hundreds of millions within a few years and then into the billions within a few years after that. Along the way, we're going to transition to profitability and the profit potential is is pretty robust. >> Yeah, that timeline you just described I think is part of the reason we've seen the stock price decline in this name. Investors just worried about how long it's going to take uh to deploy some of these different products that they are very excited about. So that two to threeyear timeline for those small modular reactors, do you think that has some investors concerned at all? Or is that even a sooner timeline than maybe some were expecting? Were some people thinking that those products might be more like 5 to 10 years down the road? >> Well, the timeline is definitely why the stock price corrected from its highs from last year. But right now, again, the story is transitioning into that revenue ramping phase. The timeline till the SMRs are deployed is still a few years out, but we're going to be building revenue between then and now. At the same time, the government is trying to accelerate and help and aid and assist the timeline to deployments. So, there's multiple tailwinds here. Uh, it looks like to me the stock price of the market is at a bottom. We may not see immediate immediate rebounding, but I would expect to see this market continue to build a support base at its current levels and then transition to a more bullish posture, same as uh symbiotic, by late year, if not uh if not sooner. >> Yeah, you already answered one of my questions, which is uh how soon could this stock actually recover? But let's dive a little bit into for both this one and the one we just did. Is now the right entry point or for investors who are looking to maybe buy the bottom in these stocks. Could there be farther to fall for either of these names? >> You can never call a bottom for sure, but it does look like a decent entry point. As always, you're just going to want to be careful not get too involved too quickly and wait for those subsequent signals before you start adding to your positions. Now, before we move on to the next stock, I do want to look at what analysts are saying about Oaklo because there is a lot of upside in some of these recent price targets for this name. Right now, that the stock's trading just over $45, but we've got a price target of $90 from an analyst that was just put out yesterday. So, that's a really fresh price targets. Why do you think the analyst community, and it's not all of them, but but some in the analyst community are so bullish for some really big gains on this stock over the next 12 to 18 months? >> Well, right. So, the forecast is pretty robust. consensus is calling for 85% upside. The stock is trading below the low end of the range, so it's deeply undervalued right now. Within all of that, the analysts have been trimming their targets. Uh so there is downward pressure on the market in that regard. Uh to me, that presents a near-term headwind. But with an upcoming release, we may get some results that help uh reinvigorate analyst sentiment. When they revert from uh lowering price targets to increasing them, that will be a catalyst for the market. And then we'll start seeing Oaklo's price action start to really gain traction. Yeah, this has been a really interesting name. I'd love to hear from viewers if you are interested in Oaklo still or if you've lost too much or have just been burned too badly by this stock that you are staying away until we start to see that rebound. Let me know your thoughts on Oaklo in the comments. All right, let's move on to the third company that you are looking at today. And this is one we actually just talked about last week in a video for a different reason. >> Uh right, that's Redwire. Redwire is performing better than expected. Um it's got a couple of of tailwinds. Previously, it was a pure play on space, but now it's a space and drone play. Both segments of business are gaining traction and supported by by government contracts and industry demand. Right now, it looks like it's on a a pretty clear pathway to growth and expanding margins with profitability due around the turn of the decade. >> This one had a lot of volatility related to that SpaceX IPO, which is what we talked about the last time we were talking about this on the show. But you can see it's recovering pretty well from that huge decline that it saw right after that IPO. But let's talk a little bit about where the price action sits today versus where analysts have this stock going. It's trading fairly close of all the names that we're talking about today. This one is trading the closest to that consensus price targets. >> Right. Uh Redwire stock has been pretty volatile over the last couple years as the market's trying to to price in its future outlook recently rebounding off a bottom catalyzed by that that earnings report. It is trading near uh near consensus. It looks like the market could continue moving higher but uh it does have a bit of a headwind in the analyst trends. They have been trimming their targets. Uh so right now there's a bit of a cap on the price action but you know based on the results uh the trends with uh with new deals and the pipeline for for sales um I would expect to see subsequent results also be strong and uh you know trigger the analysts into some more some more bullish activity. >> I love that we're covering so many different sectors in this video today. First we talked about robotics, then we talked about nuclear stocks and now we're into the space sector. All three of these sectors have really been down all summer and it's it it's hitting every stock in the sector. We talked about space last week, Thomas, and I know one of the things that you said about Redwire is that this is a name that is really going to benefit in the the broader space story that there's other companies in space that have to build an infrastructure first, whereas Redwire is kind of supporting the the whole space economy. So, as these companies are investing, Redwire will benefit. Are we seeing that show up in their earnings already? Is that why they're one of the earlier space names getting closer to profitability? >> It is seen in their results. It's it's definitely seen in their in their backlog and their momentum. All these companies that need to get into space that are launching all these satellites and building these rockets are using uh redwire components. So, you know, looking forward, it seems like this company is very well positioned uh with its acquisition strategy and its diversification into drones. It seems like a pretty solid play on uh aerospace and defense and space in general. Do you think the volatility will stick around in this name for a while >> based on the price swings that we've seen? Probably yes, just because there's a fair amount of overhang and a fair amount of skepticism in the market. Uh but I would expect to see those price peaks may result in, you know, deep pullbacks, but those pullbacks are going to lead to to new buying opportunities. >> All right, another good name for this list. Let's move on to the next name that you have for us today. That's a down stock in a completely different sector that had some pretty promising results in earnings season. >> Yeah. Um that's Sound Hound. uh Soundhound had a better thanex expected quarter and raised guidance which has really given some validation to its strategy shift. It launched a new platform earlier this year uh Oasis which is helping enterprises and businesses to develop and deploy voice actuated agentic AI like basically within minutes. Um it's it's gaining traction. It's providing a higher margin revenue stream. So it's amplifying the growth outlook and the timeline to profitability. And this is all ahead of a critical acquisition. The company's planning to buy Live Person by the end of the year. Uh that's going to more than double its addressable market while expanding its its long-term total addressable market while also improving cross-ell opportunities. Uh so really should really uh aggressively juice the outlook for revenue and for profitability. Uh which are all very strong catalyst for the stock price. Yeah, let's talk about that stock price because it has been on a massive downward trend like many of the names we've already talked about, but this one down over 50% in the last year and that chart action doesn't show a lot of positive signs. There was that nice bounce after earnings, but what do you see when you look at this chart? I know this is a company you've been bullish on for a while. Why do you think it's struggling to gain that traction? >> Profitability and cash burns a lot to do with it. The company has been spending a lot of money for years to build its infrastructure and its ecosystem. those investments are going to pay off over time. Uh but it's been a a slow grind. Uh the company is not using debt to help fuel its growth. So it's relying mostly on its own cash. A little bit of dilution, but mostly cash. And so that just makes it a slow investment process. Uh so within all of that, the short interest uh really spiked to record levels above 40% making it like one of the most shorted stocks in the market. That's really an insurmountable headwind for a company that's that's not making money. So within that story, earlier this year, the market pulled back to around $7. It rebounded and now it's rebounding again from that level. Uh this past release sparked a 30% one-day stock price increase. To me, that is straight up short covering. So the news within this report is telling the market that this company is gaining traction. It's got a clearer pathway to profitability and with the live person acquisition, there's going to be a major catalyst ahead. So right now short interest is probably coming down but not really aggressively. Uh we may see this stock continue to move sideways within the range until the next earnings release or that live person acquisition is is confirmed. But at that time I would expect to see this market begin to to move higher again cross that critical threshold near $9 and confirm it double bottom and then move higher from there over the long term. Now, the short interest point is a a really good one to point out about Sound Hound because there has been quite a bit of short interest uh for the last few months and quarters that we've talked about this name. We didn't really talk about short interest with the other stocks. I just looked back quick and it looks like all of them except Symbiotic have uh about 15 to 20% short interest. So, also rather high. Symbotic is the only one. That first stock we talked about short interest is only at about 2 and a half%. So, there's not a lot of shorts in that one, but there is a significant short interest in these other names. Is that common to see in stocks that have better long-term story but short-term uh struggling price action? Do we see a lot of shorts in these kinds of names? >> Well, especially when there are significant near-term headwinds to cloud the profitability outlook. Um it opens the door to short interest and in these stocks too, a lot of their price action was was very elevated based on those forward outlooks. So, it really just set the stage for the shorts to be able to come in and drive the prices down regardless of what the fundamental story was just because of how elevated the price action was and the timeline to execution. >> Yeah, the timeline to execution is another important point I think with Sound Hound cuz we talked about all of the potential customers uh why this concept that they have could be so beneficial. I think for a while there was talks of new partnerships being announced with the major fast food retailers, things like that. Are we starting to see those client numbers gain traction or is this an idea that's just not finding a foothold in the market yet? >> No, it's absolutely gaining traction. The last report showed expanding verticals, expanding clients and deepening penetration. So, it's getting new clients and new business verticals. The clients that it has are renewing and using the product more across more use cases. Uh, so it's got multiple tailwinds in that regard. >> Is it a margin issue at all? Is that a part of the the the struggle to profitability? What will it take for this company uh to prove that profitability points >> uh just to to reach scale and it will do that with the live person acquisition. >> Right. So it is a scaling issue with Sound Hound. That is interesting and I am curious to see as investors how long it could take for them to get to that scale they need to be profitable because there's been a lot of promise. Again, you've been excited about this company for a while. I know I added it during one of our other videos back in January to my Bridget Buys watch list. If you've not checked it out yet, definitely do. You can scan the QR code, click the link in the description. It's just marketbeat.com/bidget. And this is how we kind of follow along with all of the different stocks we talk about on this channel to see how they move after we've talked about them. And Sound again, we've talked about many times, but I added it on my watch list back in January, and it is not a strong performer at all right now. It's on the bottom 10 stocks in my portfolio. You can see Oaklo also on that list on my portfolio. This is why we like to track these and follow them over time. It's also why I like to do follow-up videos like this to stay up to date with these stocks to see uh if there still is opportunity or what investors should be doing. So, if you take a look at that Bridget Spice performance, again, this is paper trading, so it's not real money here. Uh but you can see the stocks are down 30%, down 45%. As an investor, is it important to be selling before you get to those kinds of losses or uh is it okay sometimes to have these speculative investments that you hold on to for a while, Thomas? Um, it just depends on your position and and your risk outlook. But as a trader, you're going to want to limit your risk. So, you're going to want to set yourself a stop-loss point and use that as a trigger. Uh, setting an automatic, you know, you know, selling order so that when your your your position reaches that point, it sells out. There's no decision on your part. And in that way, you can preserve your capital for your next trade. >> All right. Very good. Again, we've got one more name to cover in this list today of a down stock that had some promising signs in earnings. This is another name that's also on my rich buys watch list. But if you like this concept of looking at stocks that have had kind of a hard summer but have had some really promising signs coming out of this most recent earning season, make sure to scan the QR code or click the link to get that other article on five stocks that the market is really rewarding after this earning season. There's a lot of names that are seeing a big post earnings boost right now after struggling over the summer season. So take a look at this list. It's five other stocks you can also dive into and it is free just because you are watching our channel today. Again, this is normally for our premium subscribers at Market Beat, but it's free for you today. Okay, Thomas, let's get to that last stock to talk about and this is another name that you have been very bullish on, I think, since about late last year, >> right? It's uh Grab. It's been suffering some headwinds with macroeconomic concerns and uh some regulatory issues in some of its markets. But this last earnings report really uh hammered home its dominance and its in its core markets, the expansion of its fintech business, uh the turnaround of its profitability metrics and a lot of it based on AI and the integration of AI across its own operations and for its consumers. So this company is they call it a super app. It's uh provides services across multiple uh verticals for delivery and e-mobility and fintech for or in Southeast Asia growing faster than expected. It's accelerating uh profitability metrics are improving to the point that the company which was already buying back shares increase it share buyback plan doing all this as it was navigating some regulatory hurdles. The real takeaway is that these hurdles really had little to no impact on the business contrary to market uh to market fears. And it looks like the long-term outlook is just as strong, if not stronger than it was before. >> And this is another one where if you look at the year-to- date performance, not great, down 20% year to date. If you look at where it's at on Brit Spyy's watch list, it's down 25% since I added it back in December when we first talked about it. So, this is definitely a stock that's had a rough year for any investors that got in rather early on this name, but the the last couple of weeks and months have been pretty good for the stock. It's up about 3% in the last 3 months. So, some positive indicators for the company. Are we seeing um analysts revising uh their price targets at all? Do we see them leading the stock higher? What is it going to take to get this one to gain some traction again? Uh well the good news right now is that the analysts have been reaffirming their their previous ratings and they're kind of cementing the belief that this is a moderate buy with a substantial upside. Right now I think the consensus is forecasting about 55% and then the institutional holdings are about 55% which is another good indicator. We have strong institutional ownership and they've been accumulating stock. So right now the market is kind of wallowing near these long-term lows but it looks like we have a pretty firm support base. limited downside. Um, lots of upside potential and we're just waiting for a real strong catalyst to get the market in into buying mode. >> And this one does seem to be a little bit more of an established company. That institutional ownership you mentioned is an important note about Grab. I think it's also important to look at the short interest here. There isn't a lot of short interest. It's pretty low for this company. Does that give you any more confidence in it or is that just because they're already profitable? >> It gives some more confidence. uh it it shows that the short sellers don't see vulnerabilities or weaknesses and that's just helped derisk the outlook for me. >> Any concern here about what's been going on with the markets in the the Southeast Asia region at all kind of the market volatility that we've seen over there. Could that impact grab? >> It definitely does. Uh but again, the long-term outlook is pretty solid. So, the market turmoil will eventually quiet down and the stock will be able to get some additional traction in that regard. Uh, so until then, I I see it trading at at a solid support level with limited downside risk and a lot of upside potential. >> All right, Thomas, looking at all five of the names we talked about today, are you buying all five of them? Would you buy all five of these names, or would you pick one or two that are maybe peique your interest in those that you see as having really good long-term potential that are at a good price point to buy today? >> They all look pretty viable to me at the current price levels. Again, they all have a speculative nature, so you're going to want to be ready for some risk. uh don't buy into them uh too heavily and then wait and watch uh for the new cycles to unfold and when they're a bull bullish catalyst, it'll be um a good time to add to the positions. >> All right, thanks for breaking these down for us today, Thomas. If you want to take a look at Thomas' other buy recommendations for the month of August, make sure to watch the full video where he details the five stocks he's most bullish on this August. They are all in the tech sector, and there's some really interesting names in this list, too. So you can watch that full interview