Why Core Scientific, Inc. (CORZ) is Among the Best Oversold NASDAQ Stocks to Buy Right Now
We recently published a list of 11 Oversold NASDAQ Stocks to Buy Right Now. In this article, we are going to take a look at where Core Scientific, Inc. (NASDAQ:CORZ) stands against other oversold NASDAQ stocks to buy right now.
On April 28, Darrell Cronk, Wells Fargo Wealth and Investment Management CIO, appeared on CNBC's 'Squawk on the Street' to discuss market outlooks and what investors should look at in the current market circumstances. He opined that it is growth that investors should be worried about, not inflation. Cronk was of the view that the market will likely see better buying/entry opportunities in the coming weeks, and so it is essential to be careful when chasing equities too hard. There is a growing divide between sentiment and positioning, as we live in a geopolitical-first world where the rules of the game can change with stunning speed.
Cronk further opined that many people overlook a key fact about tariffs, solely focusing on their inflationary nature. While tariffs are inflationary, they are blunt-force resets in prices and are not sustained inflationary. So, although companies need to be able to absorb the blunt force reset of prices and impact of margins, it's not like one continues to see the rate of change of inflation move meaningfully higher up from years one to two, three, and four. This trend only emerges when tariffs move meaningfully higher up over a period of time.
READ ALSO: Recession Resistant Investing: 10 Best Grocery Stocks To Buy Now and 10 Best Stocks That Will Always Grow.
Cronk also talked about how the president has been screaming at the Fed to slash interest rates. But it's not just the president; the bond market is doing the same. Fed cuts over a period of time are essential. However, according to Cronk, if the Fed shows up tomorrow and announces an emergency cut of sorts, markets wouldn't perceive it so well. The markets would take it as the Fed knowing something they do not, and the growth scare would grow more pervasive and problematic. This is why the Fed has to be careful about how they act.
The Fed appears to be more concerned about inflation, and it has been consistent in that. If they switched to more growth concerns than inflation concerns, the markets would perceive them as more dovish. He said that we just saw the Fed's president saying that June could be on the table for a possible rate cut. The Fed is thus starting to lay the groundwork, and we would have to see how that narrative turns out. If it takes a more dovish approach, markets would perceive that in a well-timed, thoughtful way.
Since April 1, nine of the eleven S&P gig sectors have revised their guidance lower. The problem is that out of the 20%- 25% of the reported earnings that the market has seen right now, less than 20% of them have been willing to give forward guidance. Therefore, Cronk highlighted that the guidance suspension is obviously problematic and important here. The market thus needs consumer discretionary stocks and industrials to hold up and tech to deliver.
Our Methodology
We used stock screeners to compile a list of NASDAQ stocks that experienced significant YTD performance declines. We then selected the 11 stocks with the highest analyst upside potential as of April 29, 2025. We also added the number of hedge fund holders for these stocks as of Q4 2024, sourcing hedge fund data from Insider Monkey's database. The list is sorted in ascending order of the upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points ().
A table full of technology, with bitcoin mining rigs and a laptop showing a financial graph.Core Scientific, Inc. (NASDAQ:CORZ) operates digital Bitcoin mining and high-performance computing infrastructure. The company leverages its own fleet of computers, called miners, to earn Bitcoin for its own account and also provides hosting services for Bitcoin mining and high-performance computing customers at eight US-based operational data centers.
On April 23, analyst Jonathan Petersen of Jefferies maintained a Buy rating on Core Scientific, Inc. (NASDAQ:CORZ) and reduced its price target to $14.00. The analyst supported his buy rating with the company's growth potential and strategic positioning, believing it is uniquely positioned to capitalize on the exponentially growing data center demand. This holds especially true for those supporting AI infrastructure, thanks to the company's expertise in the field, which is essential for securing partnerships with hyperscalers who are generally cautious about their vendor list expansion.
The analyst further reasoned that Core Scientific, Inc.'s (NASDAQ:CORZ) partnership with cloud provider CoreWeave to significantly expand its AI business is a key revenue growth driver, as the deal is anticipated to bring in around $851 million per annum after the utilization of capital expenditure credits. Peterson said that the market appears to be undervaluing this deal and potential deals with other hyperscalers in the future, pointing towards a misalignment in current stock pricing. Core Scientific, Inc. (NASDAQ:CORZ) is also expanding into strategic locations such as Auburn, AL, and has the potential to grow its power capacity. These factors further support the buy rating by positioning the company to meet the growing demand for data center space.
Overall, CORZ ranks 4th on our list of oversold NASDAQ stocks to buy right now. While we acknowledge the potential for CORZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CORZ but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Dow futures dip as stocks eye record highs ahead of U.S.-China talks and inflation reports
Stock futures ticked lower on Sunday night as the S&P 500's recent rally has brought it within 2.4% of its all-time high reached in February, before President Donald Trump's trade war ravaged markets. That comes ahead of a big week, which will see another round of U.S.-China trade talks and key inflation reports. U.S. stock futures pointed down on Sunday night ahead of a big week that will be highlighted by more U.S.-China trade talks and fresh inflation data. A strong jobs report on Friday added more fuel to a rally that has lifted the S&P 500 to within 2.4% of its all-time high reached in February, before President Donald Trump's trade war sank markets. Futures for the Dow Jones Industrial Average fell 44 points, or 0.10%. S&P 500 futures slipped 0.15%, and Nasdaq futures eased 0.23%. Tesla stock may see more downside after Trump said his relationship with CEO Elon Musk is over. The yield on the 10-year Treasury slipped less than 1 basis point to 4.506%. The dollar fell 0.11% against the euro and 0.15% against the yen. While Wall Street may not react to Trump sending National Guard troops to Los Angeles, his overall immigration crackdown represents a labor-supply shock to the economy that has implications for the dollar. Gold dipped 0.28% to $3,337.20 per ounce. U.S. oil prices climbed 0.08% to $64.63 per barrel, and Brent crude gained 0.05% to $66.50. On Monday, U.S. and Chinese officials will meet in London to begin another round of trade talks after agreeing last month in Geneva to pause their prohibitively high tariffs. Since that de-escalation in the trade war, both sides have accused the other reneging on their deal. For the U.S., a key sticking point has been the availability of rare earths, which are dominated by China and are critical for the auto, tech, and defense sectors. Kevin Hassett, director of the National Economic Council, sounded upbeat on Sunday that the London talks could result in a resolution. 'I'm very comfortable that this deal is about to be closed,' he told CBS News. Meanwhile, new inflation data are due as the Federal Reserve remains in wait-and-see mode to assess how much Trump's tariffs are moving the needle on prices. The better-than-expected jobs report on Friday eased fears of a recession, taking pressure off the Fed to cut rates to support the economy. That means that any rate cuts may have to come as a result of cooler inflation. The Labor Department will release its monthly consumer price index on Wednesday and its producer price index on Thursday. Also on Wednesday, the Treasury Department will issue its monthly update on the budget, offering clues on how much debt the federal government is issuing amid concern about bond supply and demand. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
an hour ago
- Business Insider
TGT, CSCO, or DAL: Which Value Stock Could Offer the Highest Return?
Amid the ongoing macro uncertainty, value stocks could be an attractive addition to investors' portfolios. Value stocks trade below their intrinsic value, thus having the potential to outperform the market over the long term. These stocks are often undervalued relative to their fundamentals and growth potential. Using TipRanks' Stock Comparison Tool, we placed Target (TGT), Cisco (CSCO), and Delta Air Lines (DAL) against each other to find the value stock that could offer the highest return. Confident Investing Starts Here: Target (NYSE:TGT) Big-box retailer Target has been struggling to thrive due to intense competition, company-specific issues, and macro pressures. The company delivered disappointing results for the first quarter of Fiscal 2025 and lowered its full-year sales guidance, blaming tariff uncertainty, weak discretionary spending, and consumer backlash to the rollback of key DEI (diversity, equity, and inclusion) policies. Target has been losing market share to other retailers. It has greater exposure to discretionary items than groceries or essentials compared to rivals like Walmart (WMT). This is disadvantageous for Target, as consumers are cautious about their discretionary spending in a challenging macro backdrop. Currently, TGT stock trades at a forward P/E or price-to-earnings (adjusted) multiple of 13.2x, which is about 19.6% below the sector average. Is TGT Stock a Buy, Hold, or Sell? Recently, Guggenheim analyst John Heinbockel cut the price target for Target stock to $115 from $155, while maintaining a Buy rating, saying 'challenging fundamentals have prevailed over a modest valuation during the past year,' with the stock underperforming the S&P 500 (SPX) amid a 20% reset in 2026 EPS expectations. The 5-star analyst noted that the operating outlook for Target is uncertain due to the sequential pressure on comparable sales. That said, Heinbockel remains bullish on TGT stock due to its valuation, with the P/E multiple based on 2025 earnings appearing 'undemanding' at 13.2x, compared to nearly 16x a year ago. The analyst also highlighted TGT's dividend and potential buyback efforts, which together represent an 8% total shareholder return. Overall, Wall Street has a Moderate Buy consensus rating on Target stock based on 10 Buys, 20 Holds, and one Sell recommendation. The average TGT stock price target of $103.04 indicates about 6% upside potential from current levels. TGT stock is down 28% year-to-date. Target stock's dividend yield stands at 4.6%. Cisco Systems (NASDAQ:CSCO) Cisco stock has risen about 12% so far in 2025, as the networking and security solutions provider is expected to gain from artificial intelligence (AI)-led demand. The company recently delivered better-than-projected earnings and revenue for the third quarter of Fiscal 2025. Notably, Cisco reported more than $600 million in AI infrastructure orders from web companies, bringing the total for Fiscal 2025 to more than $1.25 billion. In fact, the company said that the figure surpassed the $1 billion mark a quarter ahead of its schedule. Also, Cisco's security products business is gaining from the $28 billion Splunk acquisition. In Q3 FY25, CSCO reported a 54% rise in its security products revenue to $2.01 billion. That said, the company lagged analysts' expectations for this business. Looking ahead, Cisco is focused on capturing further AI opportunities through continued innovation and strategic partnerships. The company is one of the U.S. tech giants that have partnered with Saudi Arabia's AI startup HUMAIN to offer AI tech. CSCO stock currently trades at a forward P/E (adjusted) multiple of 17.4x, which is about 23% below the sector average. Is Cisco a Buy or Sell Stock? Following the Q3 FY25 print, UBS analyst David Vogt reiterated a Hold rating on Cisco stock with a price target of $70. The 4-star analyst noted that the company modestly exceeded Wall Street's Q3 FY25 estimates, with stronger Networking growth driving the revenue beat while margin and EPS gained from a more favorable tariff backdrop than accounted for in the guidance and a lower tax rate. Vogt highlighted management's commentary about the strength in webscale demand being broad-based, with three of the top six webscale customers growing triple-digits. The company also mentioned its recent deals with Saudi Arabia and the UAE, indicating that the sovereign opportunity is an additional driver of its accelerating AI business. Despite the favorable AI trends and the acceleration in the core business, Vogt prefers to be on the sidelines, as he thinks that the improved performance is already priced into CSCO stock, which is trading at a P/E multiple of about 16x his FY26 EPS estimate of $4.00. With nine Buys and seven Holds, Cisco stock earns a Moderate Buy consensus rating on TipRanks. The average CSCO stock price target of $70.77 implies about 7.1% upside potential from current levels. CSCO stock offers a dividend yield of 2.4%. Delta Air Lines (NYSE:DAL) Delta Air Lines is one of the major carriers in the U.S. Despite rising about 14% over the past month due to easing tariff pressures, DAL stock is still down nearly 16% year-to-date on concerns of a slowdown in travel demand due to macro uncertainty. Back in April, Delta announced better-than-anticipated earnings for the first quarter of 2025, but pulled back its full-year outlook, saying that the tariffs under the Trump administration were weighing on bookings. At that time, Delta Air Lines said that international and premium travel, which have been growing faster than the coach cabin business, have been relatively resilient. At a forward P/E (adjusted) multiple of 9.41x, DAL stock trades at a 52% discount to the sector average. Is DAL Stock a Buy or Sell? Recently, UBS upgraded Delta Air Lines stock and rival United Airlines (UAL) to Buy from Hold, citing an improved international and premium travel demand, increased revenue expectations, and a stabilizing economic outlook. Analyst Thomas Wadewitz increased the price target for DAL stock to $66 from $46. The 4-star analyst stated that the upgrade follows the relief due to the 90-day agreement between the U.S. and China and framework with the U.K., which has shifted his base case from a potential downturn to 'stability / slow growth.' Also, based on recent commentary of the airlines, including a May 6 meeting with Delta, Wadewitz noted 'stability in demand in April and May.' He added that fare data indicates a 410 basis points year-over-year improvement for Delta and 180 basis points for United Airlines in April. UBS raised its 2025 earnings estimates for Delta from $5.05 to $5.64 per share. On TipRanks, DAL stock scores a Strong Buy consensus rating based on 13 Buys and two Hold recommendations. The average DAL stock price target of $60.93 implies about 20% upside potential. DAL stock offers a dividend yield of 1.2%. Conclusion Among the three value stocks discussed here, Wall Street is highly bullish on Delta Air Lines stock and cautiously optimistic on Target and Cisco. Analysts see higher upside potential in DAL stock compared to the other two value stocks. Wall Street is bullish on Delta Air Lines due to its solid execution, diversified revenue streams, and strong fundamentals.
Yahoo
3 hours ago
- Yahoo
How Much the Average Homeowner Has in Savings vs. the Average Renter
Housing is the largest expense for the average American consumer. The more people have to spend on housing, the less money they have available to invest, save, or spend in other categories. But does owning your home instead of renting affect how much you have in your savings account? And is it the best financial decision for you right now? Check Out: Try This: The Federal Reserve's most recent Survey of Consumer Finances suggests the answer is yes. Here's how the average renter's savings compares to those of the average homeowner. The Survey of Consumer Finances data goes back to 1989, and since then, homeowners have always had more in savings than renters, on average. However, the gap between homeowners' and renters' savings has been growing. For example, in 1995, on average, homeowners had around twice as much saved as renters. Now, homeowners have five times more in savings than the average renter. Up Next: The most recent national data estimates that the average renter had $16,930 in savings. That includes all money in savings, checking, emergency funds and money market accounts. Though rent amounts will vary greatly depending on your location and size of your space, the current national average rent in the United States ranges from about $1,625 to $2,100 per month, which is a 1.1% increase compared to last year. By comparison, the average homeowner had $85,430 in savings, which is nearly $70,000 more than the average renter. That's a big difference when it comes to what you're able to allocate for emergency savings and retirement accounts. However, buying a home is not an option for the average savings, as the national average house price in the U.S. for Q1 2025 is $503,800, whereas the median sales price in the same period was $416,900, Perhaps counterintuitively, renting is often less expensive than owning a home. In the largest 50 metropolitan areas in the U.S., the median cost of renting is currently $1,398. This figure has been trending modestly downward since the second half of 2022, and represents the middle ground, with half of rents being higher and half lower, so it is quite subject to fluctuations. The median home price is currently $416,900, and the average mortgage rate is 6.97%, per the Fed. With a 20% down payment and a 30-year fixed-rate mortgage, your monthly mortgage payment likely ranges from $2,167 to $2,715, excluding taxes and insurance. High interest rates are likely driving most of the higher costs of homeownership. If mortgage rates go down as expected, monthly mortgage payments will decrease. However, despite the higher costs, homeowners still save more than renters. So why is there such a big difference between how much renters save and how much homeowners do? One explanation is that rental prices continually increase while the cost of owning a home stays relatively stable after the purchase. Say you buy a new home with a 30-year fixed-rate mortgage. Your monthly housing costs will be stable for the 30 years of the loan. After you've paid off your mortgage, you'll have to pay only taxes, insurance and maintenance. Unexpected maintenance costs, such as roof damage or broken pipes, can eat into a homeowner's savings, whereas renters don't have to pay for these costs out of pocket since they're the landlord's responsibility. However, renters do have to cover rising rental rates nearly every year. Since 2019, rent prices have increased by around 19% nationwide. Rising rent prices can take up larger and larger chunks of renters' budgets. As their housing costs increase, they have less money to put toward savings and other financial goals. By comparison, homeowners have more of their income to put into savings after paying off their mortgages. The bottom line is that if you're a renter hoping to put more in your bank account, you should try these money-saving strategies: Pay off debt with high interest rates: High-interest debt can prevent you from building your savings. Start by paying off any loans with high interest rates, like credit card debt. Live with a roommate: Splitting your housing costs with a roommate will give you extra money each month to put toward savings. Renegotiate with your landlord: When your lease is up and it's time to sign a new one, negotiate your monthly payment. If your landlord charges more than the market rate, it may be worth moving to a more affordable home. Finally, remember to put at least some of your savings into a high-yield savings account so you can grow your money. Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard How Much Money Is Needed To Be Considered Middle Class in Every State? 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on How Much the Average Homeowner Has in Savings vs. the Average Renter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
