There is a lot of uncertainty in the financial markets right now, not just in the United States but also in Europe and Asia.
Trump's trade tariff implementations have sent the markets into a pool of downside and pessimism as outlooks on growth dim lower and lower. This, however, presents an opportunity for bargain hunters.
These value investors might be pleased to see the market give some preference to specific names in terms of price action, where a more defensive stance in the middle of these broader selloffs might offer some safety and stability moving forward. Of course, there is always a story behind the charts, and the ones told by these three companies have all of the fundamental factors necessary to keep pushing for further stability in the coming months.
Albemarle Co. (NYSE: ALB) stands out in the basic materials sector, while Celsius Holdings Inc. (NASDAQ: CELH) represents a brighter spot in the retail sector. Additionally, Cleveland-Cliffs Inc. (NYSE: CLF) could benefit from the U.S. push to domestic production and supply chains, positioning it as a potential winner in the evolving global economic landscape.
Risk-to-Reward Ratios Favor Albemarle Stock Now
[content-module:Forecast|NYSE: ALB]Now that shares of this lithium and copper miner have traded as low as 43% of their 52-week high, Albemarle stock’s potential upside significantly outweighs the downside at this low level. When investors consider it, at these low levels, there won’t be much room to keep pricing in even worse scenarios.
This leaves investors with a very simple scenario moving forward, one that creates an asymmetrical opportunity in shares of Albemarle in the coming months. But how much upside could there be in this lithium and copper play? Well, the current consensus price target for Albemarle stands at a high of $104.30 per share, calling for a net upside potential of 78.1% as of April 7, 2025.
With this high double-digit upside view on Albemarle, investors can reiterate a bullish view of this company. Not to mention that up to $479 million worth of institutional capital went into Albemarle stock over the past quarter alone, signaling strong positioning ahead of the effect tariffs may have.
That effect rhymes with domesticating the industrial and manufacturing activity in the United States, which will, of course, create a vacuum of copper demand for infrastructure and lithium demand for energy. With this in mind, investors can start to justify the double-digit upside and asymmetrical opportunity in Albemarle.
Price Action Divergences in Celsius
[content-module:Forecast|NASDAQ: CELH]Over the past month, which has been nothing but a volatility pocket in most markets, Celsius stock managed to close in on a 43% return overall, while the S&P 500 index fell by as much as 12.2% in that same period. Why the market is willing to sustain Celsius near the month’s highs is a question everyone wants answered.
And the reasoning can be found in the way that Celsius operates, with its logistics being centered within the United States and Mexico, staying away from most of the heat these tariffs on European and Asian countries have brought on different sectors. With this theme at play, there are other gauges investors can check in their construction of a buy thesis.
Such a gauge can be the 15.5% collapse in short interest over the past month alone, a clear sign of bearish capitulation in the face of all these optimistic developments happening now. Of course, further momentum can attract new buyers into the stock for all the right reasons, so keeping track of this activity can be helpful as well.
As of April 7, 2025, analysts have assigned CELH stock a consensus price target of $45.00, indicating more than 24% upside potential.
Cleveland-Cliffs: A No Brainer Setup
[content-module:Forecast|NYSE: CLF]When it comes to discounts, Cleveland-Cliffs stock offers one of the most aggressive setups on today’s list. At $6.91 a share, the stock has fallen to a low of nearly 70% of its 52-week high of $22.67 as of April 7, 2025.
Yet, there seems to be no direct fundamental justification for such a steep decline, especially in the context of new tariffs, which may actually favor domestic producers like Cleveland-Cliffs. The broader push for supply chain and steel production localization and reshoring trends might end up creating a new wave of steelmaking demand in the United States.
Because of this theme, Wall Street analysts have felt comfortable with a consensus price target of up to $16.43 per share, implying that Cleveland-Cliffs may rally by as much as 137.75%.
Keeping in mind that analysts aren’t always willing to boost a stock that has seen such bearish price action in the short term, this current view carries a lot more weight for investors looking into ideas that carry huge upside potential with very little downside risk, making Cleveland-Cliffs stock a no brainer setup to consider in today’s environment.
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