This stock has been blasted and could have the biggest upside potential among the Goldman Sachs favorites. SunPower Corp. (NASDAQ: SPWR) designs, manufactures and delivers solar systems to residential, commercial and power plant customers worldwide. The company provides solar power components, including panels and other system components. French energy giant Total owns a 57% stake in the company.
The company also offers operations and maintenance services, including remote monitoring, and preventative and corrective maintenance services, as well as rapid-response outage restoration services. Further, it leases solar power systems to residential customers and sells inverters manufactured by third parties.
SunPower serves investors, financial institutions, project developers, electric utilities, independent power producers, commercial and governmental entities, production home builders, residential owners and small commercial building owners.
The $9 Goldman Sachs price compares with a $6.57 consensus target. SunPower stock approached $8 a share on Friday.
This smaller capitalization energy company with solid upside potential and is a top Permian Basin play. WPX Energy Inc. (NYSE: WPX) is an independent oil and natural gas exploration and production company that engages in the exploitation and development of unconventional properties in the United States. Its principal areas of operation include the Permian Basin, the Williston Basin in North Dakota and the San Juan Basin in New Mexico and Colorado.
WPX is a premier Permian-levered operator with sector-leading debt-adjusted cash flow growth supported by strong execution in the core Delaware, all while trading at Williston valuations primarily due to its relatively high financial leverage.
The Goldman Sachs analysts have a $9.50 price target. The posted consensus price objective is $8.66, and WPX Energy stock has met resistance around $7 recently.
This very aggressive tech play could have upside above the Jefferies target. Zynga Inc. (NASDAQ: ZNGA) is a leading developer of mobile and social games. In the company’s relatively short history, it has developed a broad portfolio of games that includes several on Facebook and several top-grossing mobile apps. Key franchises include FarmVille, Zynga Poker, Hit It Rich Slots and Words With Friends.
Snap recently announced it was expanding its partnership with Zynga to release new titles on Snap’s gaming platform. The partnership may expand Zynga’s reach to a younger demographic, though the near-term revenue opportunity is likely not impactful to Zynga. Content investment commitment from Zynga an indication of strong engagement and a very solid long-term opportunity.
The Goldman Sachs price target is $10.30. The consensus target is $10.41, and Zynga stock briefly traded above $9.40 on Friday.
These five stocks have all been sent to the single-digit midget penalty box. Some of these companies may have a difficult road back to prosperity, but given what we have seen in the past, and the massive liquidity coming out of Washington, D.C., the odds are good that each survives this downturn and shares could head much higher in the second half of the year.