September was a rough month for stocks, will October be better?

Everyone thinks that October is statistically the worst month of the year, mainly because of the 1987 crash. However, it is actually September, and this year’s stock market performance for the month proved that. September usually starts off on the back foot. Traders get back to their desks, and reality settles in, and they hit the sell button.

September’s performance for the markets saw the S&P 500 SPX, falling by 9.34 percent, while the Dow DJIA dropped 8.84 percent and the heavily laden tech index, the Nasdaq Composite COMP, dropped  10.5 percent. The Nasdaq recorded the worst September since the financial crisis in 2008.

Last week saw all three indexes break support levels and it’s now possible that they all could fall at least 10 percent lower or more. The Dow Jones Industrial average could now test the next support level at 25000.  The SP 500 could now test the next support level at 3269, and the Nasdaq Composite could test the support level at 9800- 10000.

The past week really topped off the month, which saw currency volatility that wreaked havoc on the British pound, sent treasury yields soaring and caused the 30 year US mortgage rate to hit 6.25 percent.

So far in the first 2 days in October, markets have put in a floor after breaking technical support levels and have rallied strongly yesterday(Monday) and especially today(Tuesday) as two of the three market indexes gained over three percent.  We are now sitting at a pivotal point, are we on a new leg higher, or is this 2 day rally a dead cat bounce, and just a rebound for short sellers to release their next attack on?

Some seasoned investors felt convicted that the Federal Reserve will now hesitate with the continued aggressive rate hikes, as they see the markets, housing markets, and now job situation starting to reel in response to their monetary policy to combat the rampant inflationary pressures.

If we look at several long term charts, 5, 10, 15 and 20 year horizons, we will see that from a charting technical standpoint markets are still very very overvalued, a consequence of the pandemic quantitative easing.  Like a rubber band, the market needs to snap back into fair valuation from being pushed to far outside the realms of current fundamentals which need to support them.

Most popular stocks are now supporting “Buy” signals after the recent sell off, and technicals are now stating markets and stocks for the most part are oversold.  Apple, Tesla, Meta, Google, and Snowflake are all now sporting “Buy” signals possibly showing that this next leg up had staying power as investors are will to expose themselves to risk again as valuation models are now very appealing and worth the risk of looking into the headlights of continued interest rate hikes.

Let’s have a look at the aforementioned market leader’s stocks to gage sentiment:

AAPL Stock Forecast & Price:

Based on the Apple stock forecast from 22 analysts, the average analyst target price for Apple is USD 175.41 over the next 12 months. Apple average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Apple is Bullish , which is based on 10 positive signals and 4 negative signals. At the last closing, Apple stock price was USD 142.45Apple stock price has changed by -5.52% over the past week, -8.57% over the past month and -0.14% over the last year.


 

GOOGL Stock Forecast & Price:

Based on the Alphabet stock forecast from 35 analysts, the average analyst target price for Alphabet Inc Class A is USD 272.46 over the next 12 months. Alphabet Inc Class A’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Alphabet Inc Class A is Bullish , which is based on 9 positive signals and 3 negative signals. At the last closing, Alphabet stock price was USD 98.64Alphabet stock price has changed by +0.48% over the past week, -8.54% over the past month and -27.76% over the last year.

META Stock Forecast & Price:

Based on the Meta Platforms stock forecast from 33 analysts, the average analyst target price for Meta Platforms is USD 221.80 over the next 12 months. Meta Platforms average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Meta Platforms is Bullish , which is based on 10 positive signals and 4 negative signals. At the last closing, Meta Platforms stock price was USD 138.61Meta Platforms stock price has changed by +1.64% over the past week, -13.54% over the past month and +872.70% over the last year.

 

SNOW Stock Forecast & Price:

Based on the Snow stock forecast from 30 analysts, the average analyst target price for Snow is USD 205.85 over the next 12 months. Snow average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Snow is Slightly Bearish, which is based on 3 positive signals and 7 negative signals. At the last closing, Snow stock price was USD 172.51Snow stock price has changed by +4.48% over the past week, +0.59% over the past month and -43.20% over the last year.

 

TSLA Stock Forecast & Price:

Based on the Tesla stock forecast from 32 analysts, the average analyst target price for Tesla Inc is USD 715.87 over the next 12 months. Tesla average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Tesla is Slightly Bullish , which is based on 10 positive signals and 6 negative signals. At the last closing, Tesla stock price was USD 242.40Tesla stock price has changed by -12.18% over the past week, -10.29% over the past month and -6.19% over the last year.

 

We can see from the recent sell-off,  that stocks are becoming very undervalued in comparison with current stock prices to analyst average targets.  It would appear that we are definitely in a new leg higher which commenced on Monday October 3rd, however the question concerning investors is how high will the indexes go?  If we have a look at the charts of the three major  indexes for a short term view, we will see that indexes might only have 5-10 percent upside, maximum, before they hit resistance levels and continue on their long term downtrend reflected in a 10-15 year chart as previously discussed. In short, October could see the first half of the month experience a rally, and then the second half will see more downside, and could finish the month overall lower as a consequence as short sellers ride the bear down!

2 Small Canadian Miners with long term potential: (GOT:TSX) (AOT:TSX)

With the electric vehicle industry on the cusp of exploding and gradually replacing ICE cars. demand is starting to rise considerably for rare and precious metals.  2 small junior Canadian miners currently penny stocks, could propose to be a great long term valuation play, in which Ascot Resources and Goliath Resources could me beneficiaries. Both companies engage in mineral exploration explores for gold, silver, copper, and molybdenum.

 

The Analysis:

Ascot Resources Ltd. Stock Analysis:

Based on the Ascot Resources stock forecast from 5 analysts, the average analyst target price for Ascot Resources is CAD 1.19 over the next 12 months. Ascot Resources average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Ascot Resources is Bearish, which is based on 1 positive signals and 5 negative signals. At the last closing, Ascot Resources stock price was CAD 0.42Ascot Resources stock price has changed by +35.48% over the past week, +13.51% over the past month and -60.75% over the last year.

Ascot Resources stock forecast from 3 Crowd Analysts, has the average Crowd Analyst target for Ascot Resources at CAD 1.52 over the next 12 months. Ascot Resources average Crowd rating is a Strong Buy.

 

Goliath Resources Ltd Stock Analysis:

Based on the Goliath Resources stock forecast from 1 analysts, the average analyst target price for Goliath Resources is $1.65 over the next 12 months. Goliath Resources average analyst rating is Speculative. Stock Target Advisor’s own stock analysis of Goliath Resources is Slightly Bearish, which is based on 2 positive signals and 4 negative signals. At the last closing, Goliath Resources stock price was CAD 1.29Goliath Resources stock price has changed by +17.27% over the past week, +13.16% over the past month and +41.76% over the last year.

Goliath Resources stock forecast from 5 Crowd Analysts, has the average Crowd Analyst target for Goliath Resources at $2.16 over the next 12 months. Goliath Resources average Crowd Rating isa Strong Buy. 

 

In concluding, these 2 miners have great long term valuation potential, even though the outlined fundamentals, that are based on more mature companies, are a bit negative, there however is enough positive attributes and enough industrial demand to justify a speculative long position for future massive gains.  The higher the risk, means the returns could be outlandish, and the risk is always elevated when you are trying to find the next Barrick in the rough!

Nio Inc.(NIO:NYE) Short term weakness is a buying opportunity for the long play

CEO-Don Lawrence (Financial Analyst and veteran trader) talks about Nio’s stock, and analyzes the fundamental and technical aspects. Don discusses the range of the stock, and thinks any weakness should be seen as a buying opportunity for a long term valuation play. Don is still bullish on the stock for the long term, but believes macro pressures could cause headwinds in the short term.

 

 

 

 

Crescent Point Energy Corp.(CPG:TSX) STA Research raises the target price to $7

Crescent Point Energy Corp. Stock Analysis:

STA Research maintains Crescent Point Energy Corp. with a Hold rating and raises the target price to $7 from $6 on the company’s stock.

Based on the Crescent Point Energy Corp. stock forecasts from 8 analysts, the average analyst target price for Crescent Point Energy Corp. is CAD 15.30 over the next 12 months. Crescent Point Energy Corp.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Crescent Point Energy Corp. is Slightly Bullish , which is based on 8 positive signals and 6 negative signals. At the last closing, Crescent Point Energy Corp.’s stock price was CAD 9.11Crescent Point Energy Corp.’s stock price has changed by +19.55% over the past week, -6.95% over the past month and +52.34% over the last year.

About Crescent Point Energy Corp. (CPG:CA:TSX)

Crescent Point Energy Corp. explores, develops, and produces light and medium crude oil, natural gas liquids, and natural gas reserves in Western Canada and the United States. It’s crude oil and natural gas properties, and related assets are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota and Montana. The company was incorporated in 1994 and is headquartered in Calgary, Canada.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

Analysts rate LogicBio Therapeutics Inc. (LOGC:NSD) with a Strong Buy rating and a $3.25 target

Chardan Capital maintains the $2.5 LOGC stock price target and rates it as a Buy.

Based on the LogicBio Therapeutics stock forecast from 2 analysts, the average analyst LOGC stock price target is USD 3.25 over the next 12 months. LogicBio Therapeutics Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of LOGC stock forecast is Bearish, which is based on 2 positive signals and 6 negative signals. At the last closing, LogicBio Therapeutics stock price was USD 2.01LogicBio Therapeutics stock price has changed by +1.72% over the past week, +1.65% over the past month and -54.52% over the last year.

LogicBio Therapeutics stock forecast from 4 Crowd Analysts, has the average Crowd  Analyst LOGC stock price target at USD 2.25 over the next 12 months. LogicBio Therapeutics Inc’s average Crowd rating is Strong Buy.

 

About LogicBio Therapeutics Inc. (LOGC:NSD):

LogicBio Therapeutics, Inc., a genetic medicine company, focuses on developing and commercializing genome editing and gene therapy treatments using its GeneRide and sAAVy platforms. Its lead product candidate is LB-001 that is in Phase I/II clinical trials for the treatment of methylmalonic acidemia. The company has a collaboration with Children’s Medical Research Institute to develop next-generation capsids for gene therapy and gene editing applications in the liver, as well as additional tissues; and a collaboration agreement with Takeda Pharmaceutical Company Limited to develop LB-301. The company was incorporated in 2014 and is headquartered in Lexington, Massachusetts.

 

Latest Analyst Ratings for LOGC:

Maintains Chardan Capital Buy USD 4 » USD 2.5 2022-08-22
Maintains Chardan Capital Buy USD 6 » USD 4 2022-05-17
Upgraded by William Blair Market Perform » Outperform 2022-05-09
Downgrades William Blair Market Perform 2022-02-03
Maintains Chardan Capital Hold USD 16 » USD 6 2022-02-02
Target Lowered by Chardan Capital Buy USD 20 » USD 16 2021-12-23
Target Lowered by Barclays Overweight USD 24 » USD 8 2021-11-17
Target Lowered by JMP Securities Market Outperform USD 17 » USD 16
Reiterated by JMP Securities Buy USD 17 2021-09-27
Initiated by HC Wainwright Buy USD 15 2021-06-07
Reiterated by Chardan Capital Buy USD 20 2021-06-02
Initiated by JMP Securities Outperform USD 17 2021-03-04
Reiterates William Blair Buy 2019-11-12
Reiterates Chardan Capital Buy 2019-07-29
Initiated Roth Capital Buy USD 26 2019-05-01
Initiates William Blair Outperform » Outperform USD 26 2018-11-13
Initiated Barclays Overweight USD 24 2018-11-13
Initiates Coverage On Chardan Capital Buy USD 20 2018-11-13

 

What we like:

Underpriced compared to book value:

LOGC stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive free cash flow:

LogicBio Therapeutics had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Low market capitalization:

LOGC stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns:

LogicBio Therapeutics is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield of LOGC stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Negative cashflow:

LogicBio Therapeutics had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis:

LOGC stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

LOGC stock has shown below median earnings growth in the previous 5 years compared to its sector.