Traders predict two stocks on the market’s “naughty list” could make a comeback in 2022
Traders predict two stocks on the market’s “naughty list” could make a comeback in 2022
The stock market is on course for another year of double-digit percentage gains, but not everyone is having fun.
Peloton, Zoom Video, Penn National Gaming, and Global Payments are among the stocks that have been put to Santa’s “naughty list,” not only missing out on the rise but also incurring significant year-to-date losses.
Two of bitcoinfunda.com “Trading Nation” traders were asked which of the most battered equities might be poised for a comeback in the new year.
The payments startup Block, formerly known as Square, was highlighted by Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments. This year, the stock market has lost 23% of its value.
“This is a company that is in the perfect space for disruption,” Tengler said on Thursday, “but they appear to have faced a number of hurdles this year, not just recent regulatory concerns about ‘Buy Now, Pay Later,’ but also concerns about payment slowdowns and as fiscal’stimmy’ checks began to fade.”
She claims that the tailwinds for 2022 are already building. According to Tengler, the company’s e-commerce collaboration with TikTok and its acquisition of ‘Buy Now, Pay Later’ company Afterpay are two reasons to be bullish.
Quint Tatro, president of Joule Financial, is instead concentrating on the casino stock Las Vegas Sands, which is down more than 35% this year.
“This year, Las Vegas Sands has been dealt a double whammy. Obviously, it’s a brand associated with entertainment that will suffer as a result of Covid, but it’s also linked to China. “This stock has been in the trash heap for a long time,” Tatro added in the same interview.
In the midst of China’s patchy economic recovery, Beijing tightened down on various industries ranging from tech to private education, causing equities and companies with exposure to the country to have a rocky 2021. Macao, a gaming destination off the coast of mainland China, accounts for approximately half of Las Vegas Sands’ earnings.
“I believe tourism and gaming will resurface,” Tatro added. “This is a company that seems to be inexpensive and has been beaten up, but I believe it will do well in the next years.”