The S&P 500 and Nasdaq Composite have rebounded from their first-quarter lows, but not all stocks are benefiting equally. McGraw Hill and Booking Holdings are currently trading near 52-week lows, yet both show potential for recovery. McGraw Hill, which transitioned to a digital, AI-enabled educational content provider after its IPO last July, has seen its stock fall 30% to around $12, largely due to high debt and a recent data breach. However, analysts are optimistic, with 92% rating it a buy and a median price target suggesting nearly 60% upside.
Similarly, Booking Holdings, the largest travel company globally, is down about 28% year-to-date, reaching a low of $154. Despite concerns over geopolitical conflicts and rising gas prices impacting travel, analysts believe the sell-off is overblown. With a forward P/E of 15 and a five-year PEG ratio of 0.72, the stock appears undervalued.
Investors should consider these two stocks as potential rebound candidates, particularly given the bullish analyst sentiment and attractive valuations.
Source: fool.com