Going from worst to first is a concept that’s often true in investing. Stocks that lag the market one year are often some of the best stocks to own the following year. Although market timing is tricky, the challenge for investors is finding these stocks before they make a big turn.
Fortunately, there are several indicators that can point you in the right direction. For example, you can look at analyst forecasts. When a stock is trading below its consensus price, that’s a good indication that there may be significant upside that the market hasn’t caught on to yet.
