3 Struggling Stocks That Could Make Epic Runs

| February 24, 2017 | 0 Comments

Investors are bidding these stocks up in a hunt for value

U.S. equities continue to push to new record highs on Tuesday as Wall Street returns from a long holiday weekend. News flow is light, with focus dominated by headlines out of Washington D.C. as the war of words between the media and President Trump continues.

No major catalysts are in play Tuesday, as large caps enjoy their 12th straight rally out of the 14 sessions of the month to date.

Breadth remains a problem, however, with investors focused on powerful rallies in names like Apple Inc. (NASDAQ:AAPL) and Boeing Co (NYSE:BA) while ignoring a large list of nagging issues. In a positive sign that perhaps the uptrend will persist and that 21,000 is in play for the Dow Jones Industrial Average, I’m noticing investors rounding back to bid up underperforming names in a search for value.

Here are three struggling stocks that look fit for a turnaround in 2017:

Stocks to Watch: Verizon (VZ)

Verizon Communications

Verizon Communications Inc. (NYSE:VZ) shares are rising up and out of a two-month consolidation range to retake its 20-day moving average.

Shares have languished, with some ups and downs, near the $50-a-share level since last February, as growth in smartphone users slowed and the company focused instead on expanding vertically into content with the proposed acquisition of Yahoo! Inc. (NASDAQ:YHOO). Reports that the deal price will be cut by $350 million, following an embarrassing data breach for YHOO, is lifting VZ shares.

The company will next report results on April 25 before the bell. Analysts are looking for earnings of 99 cents per share on revenues of $30.74 billion.

Stocks to Watch: Gap (GPS)

Gap Inc

Gap Inc (NYSE:GPS) shares are rising up-and-out of a multi-month consolidation range, breaking out of the upper Bollinger band, to challenge levels not seen since December.

The company has been in turnaround mode, and was able to report some better-than-expected results for January, setting the stage for good numbers when quarter earnings are reported later this week. But Mizuho analysts are skeptical, noting easy comparisons, a tax benefit and ongoing difficulties at its core Gap stores.

The company will next report results on Feb. 23. Analysts expect earnings of 51 cents on $4.39 billion in sales.

Stocks to Watch: Gamestop (GME)

GameStop Corp.

Video game retailer GameStop Corp. (NYSE:GME) is enjoying a run at its 200-day moving average, a level shares have traded below since August.

The company recently got some positive publicity from fund manager Bill Miller, who told CNBC that GME stock is a standout in the retail space for its valuations, trading at six times earnings and 20% free cash flow yield. Watch for the company’s results to get a lift from the eagerly anticipated Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) launch of the Switch.

The company will report results on March 23 after the bell. Analysts are looking for earnings of $2.28 per share on revenues of $3.1 billion.


Note: This article originally appeared at investorplace.com.  For more articles about hot stocks, click here…

The author of this article is Anthony Mirhaydari. Anthony is founder of the Edge and Edge Pro investment advisory newsletters.

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The author of this article is a contributor to investorplace.com.

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