Stocks on Sale Today: OTEX, QCOM, and HTZ


When companies post a slowdown in revenue growth, they need to cut costs. Doing so increases the stock’s attractiveness.

On July 3, 2024, Open Text (OTEX), a Canadian document management software company, said it would cut 1,200 jobs. Ahead of the news, the stock bottomed at around $28.00. At a forward P/E of around 7.5 times, OTEX stock looks cheap.

The firm still has future performance risks ahead. The stock has been on a downward momentum in the last year. Analysts revised their earnings per share lower.

In the semiconductor sector, Qualcomm (QCOM) shares peaked at over $225. It closed at $205.75 last week. Optimism peaked after Microsoft (MSFT) included the smartphone chip supplier’s processor in its Surface tablet. Computer makers, which are in a mature, non-growth market, are offering Qualcomm-powered AI PCs.

Qcom is a speculative buy in the hopes that the uptrend continues.

In the car rental sector, Avis Budget (CAR) is steady at $100. Short-sellers are betting heavily against it with a 19.4% short interest.

Conversely, Hertz Global (HTZ) traded near $19 last year only to close at $3.64. Short interest is 31.3%.

After Hertz dumped its Tesla (TSLA) electric vehicles, its severe maintenance costs should fall. This increases its profitability potential.



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