Investor Place·2024-06-25 10:00Core Viewpoint - The equities market is recovering from the Covid-19 crisis, but many stocks appear overpriced, leading to a search for oversold stocks that present buying opportunities on dips [1][2] Group 1: Baidu (BIDU) - Baidu has seen its stock price decline over 23% since the start of the year, attributed to concerns about the Chinese economy [3] - The company is a leading internet technology firm with significant investments in artificial intelligence and large language models, making it attractive for contrarian investors [3] - Baidu's shares currently trade at 1.69 times trailing-year revenue, down from 2 times in Q1 2023, indicating a potential undervaluation [3] - The average earnings per share (EPS) over the past four quarters is $2.94, with an earnings surprise of 26.23% [4] - For fiscal 2024, analysts expect a slight dip in EPS to $11.21, with modest revenue growth of 2% to $19.34 billion [4] Group 2: Ulta Beauty (ULTA) - Ulta Beauty's stock has decreased over 21% since the beginning of the year, despite the potential for recovery driven by pent-up demand for social events post-Covid [5][6] - The company's average EPS over the past four quarters is $6.41, with an earnings surprise of 4.08% [6] - Analysts project a 3.2% sales growth for the current fiscal year to $11.56 billion, with a further 6% increase to $12.26 billion in the following year [6] Group 3: Kosmos Energy (KOS) - Kosmos Energy's stock has fallen nearly 22% since January, influenced by geopolitical factors, particularly the impact of Russia's invasion of Ukraine [7][8] - The geopolitical crisis could lead to fluctuations in demand for upstream oil companies, which may benefit from any changes in the current situation [8] - For fiscal 2024, analysts anticipate Kosmos' sales could reach $2.01 billion, implying nearly 50% growth [8]