Contrarian Traders Are Buying These 2 Stocks With Big Upside

Contrarian Investing Overview - Contrarian investing seeks opportunities in undervalued assets that others are discarding, driven by the belief that market pessimism creates a gap between price and value [1][2] - This strategy requires rigorous fundamental analysis, patience, and the ability to withstand short-term volatility [2][10] Global Net Lease (GNL) Analysis - GNL, a small-cap REIT, is facing challenges from rising interest rates, with a year-to-date loss approaching 15% and concerns over substantial debt and consecutive GAAP losses [3][4] - In Q2 FY2024, GNL reduced its outstanding debt by $251 million, improving its Net Debt to Adjusted EBITDA ratio from 8.4x to 8.1x, and increased adjusted funds from operations (AFFO) per share by 2% [4] - GNL's leasing portfolio has a weighted average remaining lease term of 6.5 years, with 59% of annualized straight-line rent from investment-grade tenants, enhancing cash flow stability [5] - The company has increased its fixed-rate debt to 99%, positioning itself prudently in a volatile rate environment, and offers a high yield of 13.14% [5] FedEx (FDX) Analysis - FedEx is experiencing challenges with missed revenue growth projections and a shift towards lower-margin services, impacting profitability [7][8] - The consolidation of FedEx Ground and Services aims to streamline operations for long-term efficiency, despite short-term disruptions [8] - FedEx is implementing a multi-year cost reduction program targeting $2.2 billion in savings, with a $1 billion accelerated share repurchase program completed and an additional $1.5 billion planned for FY2025 [9] - The company's success is contingent on overcoming macroeconomic challenges, including potential recession and supply chain disruptions, making it a high-stakes bet for contrarian investors [9]