5 Stocks Walk into a Bar....A mega cap, a large cap, a medium cap, a small cap, and a micro cap stock walk into a bar. The bartender looks at them and says, "What do you want?" They all reply, "A Shot!"
Well lets give these stocks "A Shot!" by taking a look at their price performance over the past 52 weeks and evaluating whether they are a "good buy."
Mega Cap: Facebook or Meta (FB) has fallen roughly 21% in the past 52 weeks despite having a market cap of $603B.
Large Cap: Netflix (NFLX) has fallen roughly 26% in the past 52 weeks despite having a market cap of $165B.
Medium Cap: Zoom (ZM) has fallen roughly 64% in the past 52 weeks despite having a market cap of $34B.
Small Cap: SoFi (SOFI) has fallen roughly 47% in the past 52 weeks despite having a market cap of $7.47B.
Micro Cap Loan Depot (LDI) has fallen roughly 78% in the past 52 weeks despite having a market cap of $1.3B.
All of these companies that I have mentioned above are oversold in my opinion, despite being one of the largest market cap in each of their respective segments and most are overall profitable. They all offer an important service that I have personally used in the past or currently use on an almost daily basis. Almost everyone is aware of Facebook now Meta, develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. Between the Facebook app and Instagram, they are currently the largest social media platform to date.
The same goes with Netflix. Who do you know that hasn't used or watched a show or movie on Netflix before? Within the US, its almost unheard of. Now, you can get Netflix stock at a 26% discount and its not going away any time soon as the company begins to enter new markets within developing countries. Zoom is a software that played an integral part during the pandemic, where the world resorted to working from home to combat the pandemic's spread. Thus lead to the mass adoption of Zoom's software into many companies around the world who wanted to continue to collaborate in real time. Since the pandemic and the huge gains Zoom saw, it has since erased these gains and sit at what appears to be a bottom, with massive upside potential of well over 100%+ as companies continue to work remotely despite the waning of the pandemic. SoFi provides digital financial services and is taking on the traditional legacy banks. SoFi offers loans, investing accounts, crypto accounts, credit cards, banking, insurance, insight tracking such as spending habits or credit score monitoring and much more. I believe SoFi will give large banks a run for their money, which will ultimately lead to a potential buy-out by one of the legacy banks looking for an edge. As of today, SoFi is down roughly 62% despite being profitable in the past 2 quarters with a 13% QoQ gain in the 3rd quarter of 2021. LoanDepot sells mortgage and non-mortgage lending products and in 2015 was named the second largest non-bank provider of direct-to-consumer loans within the US. With an easy to use platform, and one of the best rate offerings and customer experiences, LoanDepot is poised to grow significantly in the coming years with increased revenues from raising interest rates.
Overall, I believe in these companies on a personal level. I encourage all of you to take a look at these companies yourselves and make your own conclusions. I would also implore you to follow the advice of Peter Lynch and always understand what you are investing in, because when the market corrects, which it always will. If you do not understand the company you invest in then you will not have conviction in the company, which you would be much more inclined to sell during a 10%, 25%, or even 50% drop, when in reality you should be adding to your positions during opportunities such as this. As Baron Rothschild always said, "the time to buy is when there's blood in the streets." Even if this is your own blood.
What do you think about my analysis? Make sure to leave your thoughts in the comments below. If you enjoyed this content then please leave a like! It takes time to make these things you know.
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