MarketBeat’s Chris Marott pitches three stocks under $20 as a rotation trade in a volatile market: QXO in building materials/infrastructure, SailPoint in cyber security, and Amentis/Andis in drone/autonomous systems. The basic argument is that recent pullbacks, cautious guidance, and sector rotation have created entry points even though each name carries valuation, profitability, or short-interest risk.
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This video is a stock-picking segment built around a simple premise: despite a volatile tape and a recent rush into energy names, there may still be attractive opportunities in beaten-down, lower-priced growth stocks. Chris Marott argues that the market has been rotating aggressively, with money moving out of other sectors and into energy and oil-and-gas names, but history suggests that rotation can also create chances to buy into other sectors before sentiment improves. The host repeatedly frames the list as a way to capture “money on the sidelines” once the broader market stabilizes. The first pick is QXO, the former Silver Sun Technologies, now associated with Brad Jacobs after a large cash investment and a rebrand in June 2024. …
Near term, the trade is tactical: these are bounce candidates only if risk appetite returns and the recent energy-led rotation starts to unwind. If volatility stays elevated, short interest and weak guidance could keep them under pressure.
Over the next few months, the base case is a sector-breadth recovery where infrastructure, cyber security, and drones can participate again, but only if earnings trends and guidance stop deteriorating. Confirmation would come from stabilizing prices and continued revenue growth; disappointment would come from more cautious outlooks or another leg of rotation into defensives.
The longer-run implication is that secular themes like cyber security and autonomous systems still matter, but leadership within those themes will likely be far more selective than broad ETF narratives suggest. The segment reinforces a regime where growth must be paired with credible fundamentals once the hype phase passes.
History suggests now may be a good time to start picking through beaten-down sectors outside of energy, especially if the Iran conflict is closer to ending.
QXO will benefit as an infrastructure play because physical building products like roofing and siding are needed for commercial and residential construction, and the broader infrastructure story remains strong.
Aethon (Andis/Aethon?) reported astonishing revenue growth of roughly $30.1 million in the latest quarter versus $4.13 million in the prior year, implying the company has strong momentum despite not yet being profitable.
Is there still time to get in on these lower price tag stocks with the market the way it is today?
Chris says we're in a volatile market but the message is the market has been rotating from other sectors into energy stocks. He argues history says now might be a good time to start picking through other sectors, especially if the Iran conflict may be closer to the end than the beginning.
What's the first stock you're looking at that's under $20?
Chris identifies QXO (ticker QXO), formerly Silver Sun Technologies, bought by Brad Jacobs with a $1 billion cash investment. It's an infrastructure play distributing physical building products like roofing, siding, and waterproofing to contractors. He notes the company changed its name in June 2024 and that infrastructure stocks have been flatlining but still have a strong growth story.
Do we see economic factors or other things that could impact the growth story for QXO this year?
Chris notes the stock's pullback is justifiable because the company issued cautious/bearish guidance with weak profitability margins and declining revenue. However, analysts remain bullish with a $32.27 price target (78%+ above the close). Short interest is around 17% which could mean continued selling pressure, but if money flows away from energy into other sectors, this could be one to watch.
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