Early April's selloff after the Trump administration's "Liberation Day" tariffs was notable both because the market notched some of its highest-ever daily point losses and because even stalwart blue-chip names like Apple Inc. (NASDAQ: AAPL) were highly impacted.
Though the S&P 500 has been zig-zagging up and down in the first two weeks of April 2025, it remains down about 3% for the month, compounding broader year-to-date (YTD) declines.
For investors with cash on hand, this turbulence presents a critical question: Are there undervalued stocks that could offer strong upside potential once markets stabilize?
The short answer is yes. There are good deals on companies that have taken longer to recover from major selloff days than the broader market. These opportunities include mega-cap leaders like Apple, but they also include smaller and less-visible names. Here are three to consider.
Impinj: Near 5-Year Low P/S Despite 2024 Legal Win
[content-module:Forecast|NASDAQ: PI]Impinj Inc. (NASDAQ: PI) provides a cloud connectivity platform for retailers, supply chain and logistics, and other business clients to collect and share product and other data. The company's share price has been in decline since October 2024 following a long-standing legal conflict over a patent dispute with Dutch firm NXP Semiconductors—which Impinj eventually won. Shares fell further in early April during the tariff-related selloff marketwide.
Yet Impinj’s fundamentals are trending in the right direction. Full-year revenue increased by about 19% year-over-year (YOY), and Q4 revenue growth nearly doubled that rate. The company has dramatically reduced net losses but still remains unprofitable; if revenue continues to grow, investors might watch for profitability in the coming quarters and a shift in Impinj's share trajectory.
For investors who see profitability and capital appreciation on the horizon, Impinj is trading close to the lowest price-to-sales (P/S) ratio the company has seen in the last five years. With a P/S ratio of 5.2, a stock that may have been criticized for being overvalued last year suddenly seems more affordable than its broader industry.
Northern Technologies: Down 41% YTD But China and U.S. Deals Offer Growth Potential
[content-module:Forecast|NASDAQ: NTIC]In the case of Northern Technologies International Corp. (NASDAQ: NTIC), a maker of rust and corrosion-inhibiting products used in automotive, defense, electronic, and other applications, the selloff in early April was perhaps not as big a factor in recent declines as a disappointing earnings report. Together, NTIC stock is down more than 40% YTD.
Yet there are silver linings. The company's most recent earnings for FQ2 2025 reflect some of the major U.S. trade policy changes so far this year, but company executives nonetheless expect the Chinese market for its products to grow robustly in upcoming quarters. Net sales for the company's Chinese business increased by 8.1% YOY in the latest quarter.
Northern Technologies may also benefit from a partnership with a large U.S. distributor for its Natur-Tec products and a new line of food packaging products. Company executives expect these could contribute to growth in the coming two quarters.
NTIC currently trades at a P/S ratio of 0.8, indicating potential undervaluation. Lone analyst Gus Richard from Northland Capital Markets maintains a Buy rating on the stock with a $20.00 price target, suggesting a potential upside of 175% from its current price.
Seadrill: Revenue Dip Offset by $1B Backlog and Buybacks
[content-module:Forecast|NYSE: SDRL]With the collapse of oil prices, Seadrill Ltd. (NYSE: SDRL) has faced revenue declines. The company experienced a sequential decline of more than 20% for its fourth-quarter revenue of $280 million, although it also achieved $1 billion in backlog.
Despite being one of the smallest players in the oil and gas offshore drilling space, Seadrill has a strong balance sheet, and its backlog should give it breathing room until 2029. The firm also repurchased $100 million in shares to bolster shareholder value.
As of mid-April, the company's stock is down about 16% as it has been slow to recover from the month's selloffs. However, investors may see this as an opportunity as SDRL shares have a P/S ratio of 1.0, and multiple analysts have rated the stock a Buy. Indeed, based on a consensus price target of $62, SDRL stock could more than triple from its current price point.
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