The stocks on this list have all pulled back from loftier levels and could continue to pull back further, but there are numerous indications their bottoms are in. Not only does the price action indicate potential for a bottom, but the indicators have diverged from the downtrends, and there are reasons to buy. Those include management, long-term outlooks, cash flow, and capital return, which are substantial in all but one case. The outlier, Advanced Micro Devices (NASDAQ: AMD), is forecasted to rise by 50% at the consensus and is on track to increase capital return, given the outlook for its business.
Williams-Sonoma Gets Discounted: Don’t Expect it to Last
Like the others on this list, Williams-Sonoma’s (NYSE: WSM) stock price decline is mainly due to an analyst stock price target reset. The market overcorrected, and now there is a value opportunity in addition to the growth and capital return.
Among the mitigating factors is that several analysts increased their price targets or upgraded the stock, offsetting the impact of the price target reductions, which weren’t that bad to begin with. Most price target reductions are from above-consensus price points to still above-consensus levels.
The net result is that Williams-Sonoma remains a Hold and the consensus price target has increased. Analysts' consensus forecasts a 13% upside at the start of April and a high expectation to move into the analyst's high-end range, another 30% upside.
Regarding capital return, Williams-Sonoma sustains a high margin despite the business contraction and pays a solid dividend when buying back shares. The stock yields about 1.7% with shares near $155, and buybacks reduce the count quarterly to increase shareholder leverage. The share count fell by 3.9% in Q4 F2205 and by 1.9% for the year.
The bottom in WSM's share price is marked by the plunge on March 19th, caused by the Q4 earnings release, rebound, and subsequent pullback it sparked. The price action in late March shows support is still at the critical level, aligning with the middle of a long-established trading range.
Market Shrugs off FedEx’s Weakened Guidance
FedEx (NYSE: FDX) shares sank following its FQ3 release but triggered buying in the process. The resulting action pushed the market back above the critical support target, confirming a bottom near $233.
The reason is that FedEx is showing signs of improvement in core operations and setting itself up to resume growth with improved profitability. At the same time, its capital return program remains in place, including aggressive repurchases.
The dividend is worth 2.25% with shares trading at rock bottom, there is an expectation for distribution to grow, and repurchases will likely reduce the count by another low-single-digit figure in F2026.
Analysts rate FedEx as a Moderate Buy. The sentiment is firm, but the price target is down compared to last year.
Even so, the recent revisions align with a consensus-or-higher price point, which forecasts a 25% upside.
Advanced Micro Devices Expands Its AI Ecosystem
Advanced Micro Devices' stock price reset overcorrected relative to the analysts’ forecasts.
The market for this semiconductor stock is well below the lowest price target, which forecasts a 10% upside at the start of April.
The consensus projects a solid 50% upside for this undervalued stock, which may be a cautious estimate due to some recent developments.
Advanced Micro Devices made an acquisition and a partnership that improved its GPU functionality and its ability to sell at scale, which is critical in a world where the scale is hyper-scale.
Its stock price hit bottom in early March and shows signs of stabilizing and an increasing chance for a rebound.
