In today’s soaring market, it may seem challenging to find investment opportunities that can outperform the averages. However, according to Mizuho Securities, contrarian investors can still generate extra returns, also known as alpha, even in the current bull market. While stocks have been reaching new heights with all three major indexes hitting record levels, there are still opportunities to be found in stocks that have fallen out of favor with Wall Street analysts.
At Extreme Investor Network, we believe in the power of contrarian investing and uncovering hidden gems in the market. Mizuho recently shared a screen of top stock picks where its analysts’ price targets are 10% or more above the average analyst consensus. Among these picks, Lowe’s, PayPal, and Oracle stand out as potential opportunities for investors looking to swim against the tide.
For instance, Lowe’s, the home improvement retailer, has seen its shares slip 2% so far this year. However, Mizuho analyst David Bellinger believes that Lowe’s is well-positioned for a strong recovery as home improvement demand rebounds. With a $280 price target implying a 29% rally from its current price, Lowe’s presents an attractive investment opportunity with significant upside potential.
Similarly, PayPal has seen modest gains of about 4% this year, making its valuation compelling at current prices. Analyst Dan Dolev believes that PayPal’s Fastlane service could drive significant growth in transaction margins, with a potential lift of $1.0-1.5 billion over the medium-term. With a $90 price target that is 42% above the current price, PayPal is a strong contender for investors seeking growth opportunities in the financial technology sector.
Lastly, Oracle, the database management provider, has seen a more modest rise of 14% this year compared to other tech giants. However, analyst Siti Panigrahi sees significant potential in Oracle’s cloud computing service, Oracle Cloud Infrastructure (OCI). With a $160 price target implying a 34% rally, Oracle is well-positioned to capitalize on its under-penetration in the cloud industry and expand its operating margins to 45% by 2026.
At Extreme Investor Network, we believe in uncovering unique investment opportunities that have the potential to outperform the market. By exploring contrarian investments like Lowe’s, PayPal, and Oracle, investors can capitalize on undervalued stocks and generate alpha in today’s bullish market. Stay ahead of the trends and discover hidden gems with Extreme Investor Network.