Top 5 Turnaround Stocks to buy now]
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Hi Guys,
Ben Here Due to the recent global crisis, the planet has been put into lockdown, Economies have been halted and thus the stock market has taken a real hammering!
Is this the end of the world? Or could this be a great time to invest in Some Bargain Stocks!?
In this video we’re going to find out as I reveal my top 5 TURNAROUND GROWTH stocks for the Brave Investor!
Peter Lynch is one of the greatest investor of all time who beat the stock market by almost double as the Manager of Fidelity Investments Magellan Fund.
He states the faster a firm is growing, the higher the P/E multiple you should be willing to pay for its stock.
He states Fast Growers as stocks with (Earnings per Share ) EPS growth rates of at least 20 percent per year.
So in this video I’m going to outline some traditional growth stocks but with more of a flavour towards TURNAROUND INVESTMENTS.
5. Delta Airlines
The first potential turnaround of my list is the 3rd largest US Airline Delta.
With the travel industry been hit the hardest due to the global travel restrictions…it’s an industry with some serious challenges to over come.
Delta Airlines also wasn’t helped by Warren Buffett Un characteristically investing more into Delta Airlines before selling his entire airline portfolio!
So WOULD it BE CRAZY TO INVEST INTO DELTA AIRLINES?
In the past month, Delta Airlines stock has fell from nearly $60/share to just over $20/share. With a Price to Earnings ratio of less than 4!
This makes it a true value stock, with a high upside potential but a lot of risk in the short term.
The issue is Delta airlines is still $100 million per day. If it sustains this current rate it will likely spend I $6.75 billion in the second quarter and will likely run out of money sometime in Q3!
However, despite the challenges Delta airlines is arguably one of the best places Airlines to Whether this storm and is in a better financial shape than many of the other airlines!
I personally have a very very small stake in delta, but I understand why many investors will chose to wait on the sidelines and see how things play out.
4. Tesla Stock
Next on my list is one of the hottest stocks right now! Tesla’s first quarter earnings shocked the world as it showed surprisingly tremendous results despite
Wall Street expecting a loss of 26 cents on revenue of $6.16 billion.
Tesla actually reported an adjusted profit of $1.24 on revenue of $5.98 billion.
Tesla has faced many challenges in reopening there California Factory, and they even filed against Alameda County.
Despite challenges Tesla stock has shot up Rapidly and I actually found my position in TESLA up by 74%!
Elon Musk even tweeted “Tesla Stock Is too high” which caused a dip before regaining momentum.
I actually have a lot of faith in Tesla as a Tremendous long term company for growth with Exceptional Management & Drive by ELON MUSK.
However, I felt it’s current increase of over 74% was unjustified given the current situation with the health crisis & the rough economic conditions with over 20 million US citizens left unemployed.
I managed to get Tesla at $475 per share, and thus gained 74% in in the past few weeks. So I decided to sell half of my stock at $838 per share.
It was clear that $838 is nearly the same price as before the global crisis, which I think is crazy!
I still have a small amount of Tesla stock left but I hoping for another dip and will buy hard if this comes.
Tesla is a very volatile stock, so it’s a traders playground!
3. Arista Networks
2. On the beach
1. Live Nation
Live Nation Entertainment (NYSE:LYV) is the world’s largest promoter of live events, it operates over 270 venues from theatres to arenas). It also has the Ticketmaster platform. They also own 4/5 of the largest music festivals in North America. Back in 2016 live nation has over 71 million people grab a ticket to one of their shows. Of course the global crisi & social distancing issues have affected almost every business in a negative way but the Live events industry has been hit one of the hardest.
Live Nation was once a stock market hero, previously it had climbed from a price of just $10 per share at the start of 2013 to over $70 per share at the start of 2020. Driven by the growth of the concert attendance industry & the consumer trend in which people prefer to spend money on experiences over physical possessions.
Mark Cuban the Shark Tank Billionaire did stated he had invested into Live Nation during this latest crash. However, on an interview after he also expressed reservations about how the industry will recover.
The good news is Live Nation doesn’t have any major debt maturities in 2020 & most likely has enough cash on hand to whether this storm!
If live nation can recover to previous highs you could double or even triple your investment, However…for me it’s one to watch at the moment and there are much safer companies to bet on in the short term.
For MY FULL stock analysis on the turnaround stocks mentioned above, check out my TOP STOCK PICKS FOR 2020 Playlist on the Link below!
SO ARE YOU BRAVE ENOUGH TO INVEST IN SOME OF THESE POTENTIAL TURNAROUND STOCKS.
COMMENT on our YOUTUBE CHANNEL!
