3 Beaten-Down Stocks to Buy Following Disappointing Q2 Sales Guidance
Based on reports released so far, this quarter's earnings season thus far has been a winner. With about a fourth of companies already reporting, the S&P 500's first-quarter bottom line is on pace to come in at $42.28 per share, more than doubling last year's COVID-crimped first-quarter profits. That result is also a bit better than expected. The broad market has also been buoyed by the combination of last quarter's results and earnings expectation going forward.
But not every company's stock price is up in response to last quarter's reports. A handful of stocks have been upended by a response to lackluster outlooks for the quarter currently underway. Given the bigger trends in play, though, these companies may merely be underpromising now in a way that positions them to overdeliver three months from now. That suggests these sell-offs might be prospective entry points.
Let's take a closer look at three companies whose earnings guidance may be underplaying their true growth potential.
Source Fool.com
