We recently published a list of Top 10 Beaten Down Large Cap Stocks That Can Double According To Wall Street. In this article, we are going to take a look at where FTAI Aviation Ltd. (NASDAQ:FTAI) stands against other top beaten down large cap stocks that can double according to Wall Street.
There was a point in the early days of Donald Trump’s presidency when the stock market looked set for a bull run. Bit by bit, the market digested geopolitical issues, trade wars, and recession fears. It looked like these were temporary concerns only.
We’re now less than two months into the presidential term and every consensus trade seems to be unravelling in front of our eyes. Investors are panicking and the state of the US economy looks fragile, with recession knocking on the door.
Investors operating in capital markets do not have the luxury of getting out of the market. No matter how the market behaves, they will still be here hunting for opportunities. That’s exactly what we do as well. As the market tanks, we decided to look at beaten down stocks that could comfortably outpace the market if bought after the current sell off.
To come up with our list of 10 beaten down large cap stocks that can double according to Wall Street, we considered stocks that have a market cap of at least $10 billion, have been hammered in the past week, and have a Wall Street price target that could see the stock double from current levels.
A team of airline employees surrounded by flight deck controls, with a variety of aircraft outside.
FTAI Aviation Ltd. (NASDAQ:FTAI)
FTAI Aviation Ltd. is the acquirer, owner, and seller of aviation equipment for the transportation of people and goods. The company operates through Aviation Leasing and Aerospace Products segments.
The highest Wall Street price target for FTAI is $300, a 207% upside from current levels. The stock has lost one-third of its value in just three weeks, so a lot of the current negativity in the market is priced in. We use this opportunity to focus on the positives.
FTAI is a unique play because unlike other aviation stocks, it doesn’t make many new products. Instead, it focuses on adding value to existing aircraft and extending the remaining life of engines that have already been used a lot. In other words, it buys used engines and determines how best to make the most of them, on an engine by engine basis. This is also what makes it hard to value the business, since the economic value of each engine to FTAI cannot be pre-determined by analysts.
This complexity is exactly what brings us the opportunity to invest in a stock that Wall Street believes could triple from here. Would investors want to miss out on such an opportunity amid broader market turmoil?
FTAI is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held FTAI at the end of the fourth quarter, which was 41 in the previous quarter.
Overall, FTAI ranks 1st on our list of top beaten down large cap stocks that can double according to Wall Street. While we acknowledge the potential of FTAI as a leading 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. If you are looking for an AI stock that is as promising as FTAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
