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Unlocking Opportunities: 4 Stocks Poised for Resurgence in 2024

In the dynamic landscape of the stock market, investors often seek innovative strategies to identify promising opportunities. 

With the S&P 500 reaching new heights, finding undervalued stocks requires a creative approach. Evercore strategists have turned their attention to the Russell 1000 index, unveiling a list of stocks that, despite recent setbacks, boast robust earnings potential that the market may have overlooked.

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Identifying Potential Winners

To make it onto this select list, stocks needed to meet specific criteria:

Performance Metrics
  • Must have been down at least 10% from the beginning of 2022, aligning with the market's peak.
  • Analysts forecast a 2024 EPS growth of 7% or greater, reflecting the long-term historical average on the Russell 1000.
Consistent Earnings
  • Companies must have beaten bottom-line estimates in at least seven of the past eight quarters.
Valuation and Market Size
  • Shares should not have forward price/earnings multiples exceeding 50 times.
  • Market values must be $5 billion or greater.


The Chosen Four: A Closer Look

Out of the identified stocks, four have caught the eye:

1. Citigroup (C)
  • Performance: Down around 14% from its 2022 starting price.
  • Earnings Track Record: Impressive, beating EPS estimates in each of the past 20 quarters.
  • Outlook: Analysts anticipate low single-digit annual sales growth over the next three years. The company's focus on share repurchases, supported by strong free cash flow, positions it for almost 12% annual EPS growth to $5.40 in 2026.
2. Comcast (CMCSA)
  • Performance: Approximately 14% dip from the start of 2022.
  • Earnings Track Record: Consistent, beating EPS estimates in the past 20 quarters.
  • Growth Prospects: Analysts foresee low single-digit annual sales growth, reaching $126 billion by 2026. A robust EPS growth trajectory, nearing 12% annually, is expected, fueled by strategic share repurchases.
3. Trex (TREX)
  • Performance: A substantial 42% drop since the beginning of 2022.
  • Earnings Track Record: Solid, beating EPS estimates in seven of the past eight quarters.
  • Market Position: A leading $8.4 billion manufacturer of home decking and railings.
  • Growth Drivers: Analysts project 11% annual sales growth to $1.35 billion by 2025. Expected 17% annual EPS growth to $2.55 by 2025, driven by rising operating margins due to the increased use of recyclable materials.
4. Qorvo (QRVO)
  • Background: Formed by the merger of TriQuint and RF Micro Devices, Qorvo is a designer and manufacturer of RF chips used globally.
  • Recent Performance: Qorvo's Q3 revenues of $1.10 billion beat analyst expectations by 10.1%. The stock surged 18.4% since the results, currently trading at $104.21.
Opportunities in Uncertainty

As investors navigate uncertainties in the market, these identified stocks present themselves as potential candidates for a resurgence in 2024. Their ability to weather recent downturns coupled with strong earnings trends positions them as intriguing options for those seeking opportunities in a changing financial landscape. Keep a watchful eye on these stocks as they could emerge as winners in the quarters to come.


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