Market watchers have been reluctant to name the bottom of global stock sales this year, but some assets appear to have already been over-sold and may be ready for a jump. The stock market turned into a bear market in the first half of this year amid fears that an excessively aggressive interest rate hike could lead to an economic downturn in the United States and beyond. But there is some good news for investors, with research showing that a small relief leap can be delayed for a long time, regardless of the underlying scenario. What stocks will these be? To identify the names, CNBC Pro used FactSet data to check MSCI World shares, which appear to be ripe for a return. These shares are being sold at the largest discount on the average price in the last 200 days. This metric is known as the 200-day moving average – a key indicator used by traders and market analysts to identify long-term market trends. The list is then further narrowed by examining stocks that are more volatile than the index. The remaining names have a 3-year historical beta greater than 1. Beta is a measure of stock volatility; A beta greater than 1 means that the stock moves in daily trading with larger increases than the market itself – this means that it is more likely to move relative to a wider market during a rebound. According to FactSet, they are also being bought by most analysts, with an average potential increase of at least 10% over the next 12 months. Screen-creating stocks About one-third of the 54 stocks that created the screen were financial stocks. The list includes two private equity giants – Blackstone and KKR & Co. Both stocks are trading more than 20% of their 200-day average. According to Reuters, they are also among several companies offering a deal worth up to $ 22 billion for the troubled Japanese conglomerate Toshiba. Several US financial services firms, including Wells Fargo, Charles Schwab, SVB Financial, Apollo Global Management and Carlyle Group, have also developed the display. Charles Schwab and SVB Financial also previously appeared on CNBC Pro’s screens of banks performing well during the Fed’s interest rate hike in 1994, when the central bank doubled its key policy rate to about 6% in seven rapid increases. According to FactSet, both firms are expected to increase net interest income this year and share prices will rise. Not surprisingly, a number of semiconductor resources were included in the list. After years of dominating revenues, semiconductor reserves have weakened this year. The iShares Semiconductor ETF, or SOXX, which tracks semiconductor performance, has dropped more than 30% so far. Taiwan’s Nan Ya Printed Circuit Board and investor’s favorite Nvidia are trading at 40% and 32% of their 200-day averages, but analysts gave stocks an average potential increase of 54.3% and 40.5%, respectively. Advanced Micro Devices, ASML and Qualcomm are trading at more than 20% off at an average price of 200 per day. The screen was also developed by two car manufacturers. Electric car giant Tesla is trading 22.6% above its 200-day average, but analysts have increased its stock potential by 39.6%. The Texas-based carmaker’s stock price was affected, among other things, by job losses, uncertainty over CEO Elon Musk’s Twitter deal and his recent comments that new plants in Germany and Texas are losing “billions of dollars now.” Automaker Stellantis was also included in the list with a 22.1% discount on the 200-day average price of stock trading. A number of material resources also appeared on the screen of CNBC Pro. These include the Swiss private chemical company Sika, the French manufacturer Compagnie de Saint-Gobain, the Arizona-based mining giant Freeport-McMoRan and the Indian mining company Vedanta. Other stocks on the list include MGM Resorts, advertising technology firm Trade Desk and entertainment ticketing company Live Nation Entertainment.
Analysts say overpriced global stocks are ready to rise again
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