6 Beaten Down Stocks Rated Buy (SA Quant)

Market Overview - The S&P 500 experienced an over 8% decline in a three-week selloff due to recession fears, with significant drops in the Tech (15%) and Consumer Discretionary (12%) sectors, while defensive sectors like real estate, staples, and utilities posted positive returns [1] - The market rebounded after CPI data showed inflation below the 3% consensus estimate, leading to expectations of Federal Reserve rate cuts starting in September [1] Investment Opportunities - Amid the selloff, a search for safer investments emerged, with the CBOE Volatility Index reaching pandemic-era levels, contrasting with the previous year's market greed [1] - Six stocks identified by Seeking Alpha Quant Ratings have shown strong investment fundamentals despite recent declines, with all having Buy or Strong Buy ratings and trading at attractive valuations [3][21] Company Highlights Carnival Corporation (CCL) - Market capitalization of $19.69 billion, with a Strong Buy rating and ranked 2nd in its industry [4] - CCL's stock fell over 15% in the past month despite strong fundamentals, including record Q2 results and significant growth in revenue (+34%) and operating cash flow (+516%) [4][5] - The company anticipates strong demand for 2025 sailings, indicating pricing power and a positive outlook for future growth [4] Trip.com Group Limited (TCOM) - Market capitalization of $27.35 billion, also rated Strong Buy [6] - Despite a 10% decline in the last 30 days, TCOM benefits from a booming travel season in China, with a 150% increase in foreign visitors and a 400% rise in inbound bookings [7][8] - TCOM's profitability is strong, with a gross profit margin of 80% and an EBIT margin of 26%, alongside a forward PEG of 0.29x, indicating an attractive valuation [8] Amphastar Pharmaceuticals, Inc. (AMPH) - Market capitalization of $2.21 billion, rated Buy [9] - AMPH's stock is up over 10% in the last 30 days but down 20% over the past year, with Q2 revenue growth of 25% YoY [9][11] - The company focuses on high-margin proprietary and biosimilar products, with a projected annual market size of over $13 billion [11] Corporacion America Airports S.A. (CAAP) - Market capitalization of $2.57 billion, rated Buy [12] - CAAP's stock is down approximately 10% in the past 30 days, affected by declining passenger traffic [12][15] - Despite recent challenges, CAAP has shown solid fundamentals with EPS growth of 108% in the trailing twelve months and projected FY24 EPS growth of 20% [15] Twilio Inc. (TWLO) - Market capitalization of $9.75 billion, rated Strong Buy [16] - TWLO's stock is up 4.5% in the last 30 days but down over the past year, with a strong earnings track record and 28 upward revisions in the last 90 days [16][17] - The company is positioned for growth through enhanced customer engagement solutions and is trading at a 68% discount to the sector based on a forward PEG of 0.59x [17] Sterling Infrastructure, Inc. (STRL) - Market capitalization of $3.52 billion, rated Strong Buy [18] - STRL's stock is down 13% in the last month but up 38% over the past year, with Q2 revenue beating expectations [18][20] - The company has a projected EPS growth of 26% in FY24, supported by a strong backlog and solid profitability metrics [20] Conclusion - The recent market selloff presents opportunities to acquire stocks with strong growth prospects and attractive valuations, as identified by Seeking Alpha [21]