4 Undervalued Stocks Positioned for a Turnaround
Overview:
The market had a great run to end 2023 and we’ve now given back some of the gains. Some caution is warranted. Be selective in stock selection as we digest these gains.
Outlook: Confirmed Uptrend. 3 Distribution Days on Nasdaq / 4 on S&P
Legal Disclaimer: The Author is not a registered investment advisor. Investing involves risk. Financial information provided is believed to be accurate but we are not responsible for inaccuracies. I may own these securities for myself or in accounts that I manage. Past performance is no guarantee of future returns.
Recent Names: $ YRD
Yiren Digital is looking good as it raced upward on heavy volume.
Danaos $ DAC $79.37
Danaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as chartering its vessels to liner companies. As of March 7, 2023, it had a fleet of 68 containerships.
Valuation:
Compelling valuation with a price earnings ratio (p/e) of 3, strong cashflow, and high return on equity of 31%.
The company is using it’s cashflow to benefit shareholders with buybacks and dividends.
The company has returned nearly $200M to shareholders over the last 18 months.
Technical Overview:
Entered an uptrend with a high relative strength (90).
Next earnings report: 2/12/24