The market correction over concerns about European debt and a possible recession has created many new stock bargains. A number of well-known stocks have dropped 30 to 50%, in just weeks. Emerging market stocks have been hit hard but that sector could be one of the first to rebound. Many emerging market economies don't have the debt issues that are plaguing Europe and U.S., plus they are growing faster.
It's a good time to start picking up cheap shares and set up your portfolio for a big rebound. If you buy at or near the recent lows, you could end up just about doubling your money if these stocks hit the price targets set by analysts this year. Here are a number of stocks that have price targets that are around double the current stock price:
Perfect World Co., Ltd. (PWRD) is trading at $13.16. PWRD is one of the leading online gaming companies in China. These shares have fallen from a 52 week high of $34.40 and just recently hit a 52 week low. The 50-day moving average is $15.73 and the 200-day moving average is $20.40. PWRD earnings estimates are about $3.08 per share in 2011, and $3.29 for 2012. This puts the PE ratio at about 4, which is very low for one of the leading online gaming companies.
The balance sheet is extremely strong with about $6.77 per share in cash and no debt. The substantial amount of cash they have on the balance sheet will allow them to invest in future high growth opportunities. HSBC (HBC) has set a $27 price target for PWRD shares.
Qihoo 360 Technology (QIHU) is trading at $19.61. QIHU is one of the leading providers of Internet security products in China. The 52 week range is $14.30 to $36.21. The 50-day moving average is $20.07 and the 200-day moving average is unavailable since this company recently went public.
QIHU has earnings estimates of about 32 cents per share for 2011 and 60 cents for 2012. These shares have dropped from recent highs of around $25. Stifel Nicolaus (SF) set a $38 price target for QIHU shares.
Renren, Inc. (RENN) is trading at $5.97. Renren is a social networking company in China. Many call it the "Facebook" of China. The 52 week high is $24. These shares have dropped from recent highs of around $14 to current levels. Reports have put the value of Facebook at around $75 to $100 billion, and that makes buying RENN with a enterprise value of about $1 billion a real bargain.
The largest social networking site in China (the most populous nation in the world) has to be worth more than 1% of Facebook. This stock should see a boost when Facebook goes public. One analyst just set an $11 price target and estimates "Renren will make 8 cents this year on sales of $125 million, rising to 16 cents next year on $200 million".
Yingli Green Energy Holding Co., Ltd. (YGE) is trading at $3.76. The 52 week range is $2.75 and $13.59. The 50-day moving average is $4.49 and the 200-day moving average is $8.79, so the shares are trading well below support levels. Estimates for YGE are about 83 cents per share in 2011, and 49 cents for 2012. This puts the PE ratio at about 4.
Yingli shares have been a little stronger when compared to some other solar stocks. This is another stock I would consider buying when a clear bottom is in for this sector. Price targets widely vary for YGE with Auriga setting a $2 target. However, Avian has set a $7.50 price target for YGE shares.
Petroleo Brasileiro (PBR) shares are trading around $24.61 per share. PBR is a major integrated oil company, based in Brazil. These shares have traded in a range between $20.76 to $42.75 over the past 52 weeks. The 50-day moving average is $25.68 and the 200-day moving average is $33.29. PBR has dropped with the global stock markets and recently hit a new 52 week low at $20.76.
The shares are trading below stated book value of $27.95 per share. I would only buy this in stages to take advantage of any further weakness. Barclays Capital (BCS) gives PBR an overweight rating with a $42 price target.
Posco (PKX) is trading at $79.89. Posco is one of the leading steel companies in South Korea. These shares have fallen from a 52 week high of $118. PKX earnings estimates are at $11.45 per share in 2011, and $13.17 for 2012. This puts the PE ratio at about 6.5, which is low for one of the leading steel companies.
Concerns over a global recession have caused economically sensitive stocks like PKX to decline, but the sell-off might be overdone. The balance sheet is strong and the book value is listed at $108.35. Earlier this year Standpoint Research set a $140 price target.
Arcelor Mital (MT) is trading at $19.41. Arcelor is one of the leading steel companies, headquartered in Luxembourg. These shares have a 52 week range of $14.77 to $38.88. The 50-day moving average is $18.81 and the 200-day moving average is $30.36.
MT earnings estimates are at $2.43 per share in 2011, and $3.17 for 2012. This puts the PE ratio at about 7. The balance sheet is strong and the book value is listed at $108.35. Dahlman Rose recently set a $34 price target.
Disclaimer: The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. This information is solely educational in nature and not intended to serve as the basis for any investment decision.