Don't MISS The BUYING Opportunity in These Beaten Down Stocks

Some of the best stock opportunities happen when sentiment completely falls apart. Not because the businesses are dead, but because fear starts to outweigh fundamentals. And as investors, we can find great deals. When you find stocks that are seeing separation with rising and improving business fundamentals and stock prices that simply aren't keeping up or in fact are pulling back. And in today's video, I'm going to be breaking down three stocks that have pulled back hard and look like great opportunities. And I'm not here to hold you hostage in terms of the stocks I'm covering. So, I'm going to let you know right out of the gate. The three stocks we'll be covering in today's video includes SoFi Technologies, Zcaler, and Apploven. And the key question is, is the market correctly pricing these stocks in or is there an opportunity? So, let's start with the most controversial name on the list with SoFi Technologies, stock ticker Sofi. This stock has been extremely volatile, and honestly, a lot of investors still don't know how to value it. Some people still think SoFi as just a lender or just student loans, just another fintech trade, but the business is evolving into something much, much bigger. Did the company get ahead of itself when it crossed the $30 threshold? Absolutely. But now it has pulled back to $15. Meanwhile, the business continues to grow. You're seeing deposits grow, cross-selling expanding financial products broadening. This is turning into a full financial ecosystem. Now, the concerns are real. macro pressures, credit cycle risk, execution risk. Look here at this chart showing member growth, total products growth, and lending volume growth. Does this have the look of a company that's maturing and slowing or still firmly in growth mode? So, right now, I think the market is in fact getting it wrong, and they are pricing SoFi as if growth is dead. And if they continue executing, the narrative is going to quickly change. The thing is is the fact that I've been doing this for a while. And earlier this year, I called Nvidia the easiest buy in the market. Amazon was the cheapest it's ever been in terms of EV to Ebida. Google was trading at just 17 times. As an experienced investor, I'm able to block out the noise, understand the financials better with my CPA background, and pounce on opportunities. Does that mean they go up immediately? No. But that is actually better because it allows me to accumulate more shares. Had Nvidia popped after my first video on them, I wouldn't been able to execute multiple share purchases on the stock. Take it as a blessing in disguise. SoFi is a name that I believe will be a $50 stock in the near future. And before we move on to stock number two, let me take a quick moment to introduce to you a platform that I love to use, which is Snowball Analytics. I get a number of questions on an almost weekly basis from many of you and those in my Discord about an easy way to not only track your portfolio, but more importantly, your dividends. My answer is always Snowball Analytics. Snowball Analytics is a simple yet powerful portfolio tracker. And for me, one of my favorite dashboards is the dividend projection, showing my dividend income for my portfolio, looking ahead to help me keep me on my dividend goals. And just recently, the platform made some big AI upgrades, bringing even more value to users with AI insights. Try it out now for yourself for free with a 14-day free trial when you use my link in the description below. Thanks to Snowball Analytics for sponsoring today's video. All right, with that being said, now let's jump into stock number two, which is going to be Zcaler, stock ticker ZS. Cyber security stocks have seen pressure as investors rotate in and out of growth names. But here's what matters. Cyber security is not optional, especially as cloud adoption grows, AI expands, and enterprise networks become more complex. Zcaler is positioned directly in zero trust security, which is becoming increasingly important. The stock has sold off because expectations were extremely high coming into the year. Growth has normalized somewhat, but normalized growth is not the same as broken growth. But the biggest reason has been the absurd thought process that AI is going to put these cyber companies under. Anytime chat GPT or Claude mentioned cyber capabilities, investors sold their cyber stocks. And that was wrong in my eyes. Just look at cyber leader CrowdStrike. To start the year, shares of CrowdStrike fell 25% through the end of February. Zcaler was even worse, down 36% as anything even remotely close to being considered software sold off. However, since the end of February, shares of CrowdStrike have seen a resurgence to the tune of 65% gains. These are investors saying, "Wait a second here. Even the AI companies are saying their models are not to the level of protection that a company like Crowdstrike or Zcaler can provide." That right there should have been a tell. But you can also see companies are not leaving. In fact, they're leveling up their cyber security protection. Crowd Strike, for example, has seen revenues grow, but more importantly, their RPOS or remaining performance obligations are rising at levels we have not seen before. But Mark, I thought you said stock number two was Zcaler, not Crowdstrike. I did, but Crowdstrike has already made the big move. Since that same period, shares of Zcaler have only climbed 7%. Meaning there could be some big opportunity here. That is if the financials are backing that up. Looking here at this chart, you're seeing the same steps higher, just like we did with CrowdStrike. Maybe not to the same level, but the direction is new record highs. That distinction matters. The long-term demand story still looks strong for Zcaler. With that being said, now let's move on to stock number three, which is going to be Apploven, stock ticker AP. This is probably the most misunderstood stock on the list, but also one that comes with a lot of risk. And like most software companies, the past six months, they have gotten smoked. Over that six-month time period, the S&P 500 has climbed more than 10%. Apploving shares, on the other hand, are down nearly 15%. A lot of investors still think of Apploven as just a mobile gaming company, but increasingly this is becoming an advertising technology, an AI optimization story. Their technology helps advertisers target users, improve monetization, optimize ad performance, and that becomes more valuable in a digital economy driven by data and AI. When advertisers see returns increase, they are more inclined to return again and more often. Now, yes, the stock is volatile, sentiment swings hard, and execution matters enormously. But the market may still be underestimating how strong the business model can become if they continue to scale. Looking here, you can see the growth in revenues and operating profits. But the most impressive thing is the operating margin. This is a company that during the start of the pandemic had negative operating margins. And now today they're sitting at 77% which is wild. A very high margin business to say the least. In addition, the company has seen its free cash flow balloon higher from 400 million just back in 2022 to 4.4 billion in the past 12 months. And that number is expected to reach 5 a.5 billion by the end of this year. Earnings for the company are expected to grow at an average annual rate of 45% per year over the next two years and trade at a forward PE of 28 times, meaning they have a PEG ratio of just 0.6, which is very intriguing. This is a company where it has plenty of risk, but valuations are pricing in very little growth, though. Definitely a stock worth a second look with big upside. But here's the important point. A stock being beaten down does not automatically make it a buy. In fact, sometimes the market is absolutely correct. But other times the market becomes overly focused on short-term fears, sentiment, and recent price action. That's where opportunity can emerge. Again, I'm not trying to time the exact bottom in stocks. Instead, I want to buy highquality assets at great valuations. So, stepping back, we looked at SoFi, an evolving financial platform. Zcaler long-term cyber security demand is still there and applovening a misunderstood AI ad tech play different businesses different risk but all three have one thing in common the market may be overly focused on the near-term and if you enjoyed this video be sure to hit that like button down below and if you want to track all of the stocks that I'm buying and selling get daily market insights then join my investing community the stock investors edge using the link in the description below thanks again for watching and we'll catch you in the next one take here.