These 3 Crashed Stocks Offer Interesting Entry Opportunities - A Financial Expert Reports

These 3 Crashed Stocks Offer Interesting Entry Opportunities - A Financial Expert Reports

The year 2023 was a good year for the stock market, as the major indices show. The DAX rose by 5%, the S&P 500 by 9% and the Nasdaq even by 30%. Nevertheless, some stocks from the second tier performed significantly worse. However, three such stocks that are down more than 30% could offer interesting entry opportunities.

Carl Zeiss Meditech: share price fell by 37%

Carl Zeiss Meditech shares have had a strong upward trend in recent years, reaching an all-time high of almost 200 euros in 2021. Since then the share price has fallen to 74 euros. The reasons for this decline are difficult to explain operationally, as both sales and profits rose continuously in 2020. In the first nine months of the current fiscal year, the company recorded a 13% increase in sales and a 7% increase in earnings per share. Due to the company's leading position in its niche areas and investments in research and development, I see Carl Zeiss Meditech's long-term success path continuing. The P/E ratio of 22 is considered cheap.

Encavis: Solid business model, weak share price

The operator of solar systems and on-shore wind farms, Encavis, has had turbulent times. In 2022, the company recorded an explosive increase in sales (+39%) and operating EBIT (+33%) due to high electricity prices and good weather conditions. This special boom has weakened in the current year, resulting in stagnating sales in the first half of the year and a 15% decline in operating EBIT. As a result, the share price fell by 33%. Nevertheless, operational business continues to run well, generation capacity continues to increase and the portfolio is continually being expanded. Given the high demand for green electricity and the positive growth prospects, I think the P/E ratio of 21 is appropriate.

NextEra Energy: 31% share price decline in 2023

The shares of the US energy supplier NextEra Energy have performed well in the long term, with a price increase of 156% over a ten-year period. However, in 2023, the share price has fallen 31%, largely due to increased interest rates and the heavily indebted company's high financing costs. Nevertheless, the business continued to perform well in the third quarter of 2023, with earnings per share growth of 11%. NextEra Energy is well positioned to benefit from long-term green energy developments. The P/E ratio of 27 seems fair.

The information mentioned is based on the article “30% and more this year: These 3 crashed stocks are interesting now” by www.aktienwelt360.de.