Stocks that are staging a comeback
Analysts take a look at some under-performers with recent, surprising turnarounds.
A number of stocks turned positive last week after having underperformed this year, offering some opportunities, the CNBC "Fast Money" traders said Friday.
StockMonster's Guy Adami said Iron Mountain (IRM) was worth a look.
"This stock had a nice run, then the IRS came out and said, 'We're scrutinizing their decision to try to become a REIT,' and that's when the stock fell out of bed," he said. "Back from the dead. I think it's back from the dead."
Adami added that there's a possibility that Iron Mountain fails in its bid to become a real estate investment trust.
"Then you're screwed," he said.
Brian Kelly of Brian Kelly Capital was eying Alcoa (AA).
"Today, you had some news out of Russia where they're talking about potentially stockpiling aluminum to keep the price up, and you're starting to see that with a lot of governments, even the U.S. government talking about sugar," he said.
Kelly saw potential upside that overcame his view of the stock.
"I'm not a huge fan of Alcoa, but the chart looks fantastic," he said. "This is going to be great for a trade."
Bank of America's (BAC) upgrade of iron ore would help CLF, he said.
"They're very, very levered to the price of iron ore, and if it goes any higher, you go with that," Seymour added.
"Walter Energy last week had a big restructuring of a lot of debt, and that, to me, also is why you're playing this one, not because you think coking coal is going to the moon."
Josh Brown of Fusion Analytics picked an exchange-traded fund, VAW (VAW), which he said had the "broadest possible exposure" to basic materials and chemicals.
"There is a second rotation derivative happening," he said. "We're switching away from this deflation idea, and now we're contemplating the possibility of a return to global growth."
The ETF's holdings could be poised to rebound, Brown said.
"It's a who's-who list of stocks nobody's cared about," he added. "Talk about back from the dead, you're talking about agricultural. You're talking about global chemical names. You're talking about Freeport-Mac. And these are the types of stocks that trading at a much lower multiple than the overall market. Some of them pay even higher dividends. Very, very depressed in the sales cycle, but if they stage a comeback, these stocks can go absolutely wild. If this is your first cycle, your first rodeo, you have no idea what's possible."
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The idea of US crude being a shelter from turmoil abroad may not be as far fetched as it seems.
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