It’s always tempting to get on the bandwagon of stocks on the rise, however it can also be rewarding to look for a beaten-up stock, where the market has gone too far because it’s too short term in its view on a company. It’s especially interesting when the cause of the stock price belting is because the international commodity price is weak, reflecting a current problem that’s not likely to last forever.

If you need an example, try ZIP. This company has surged this year by a whopping 481%, despite a 7.37% slump on Friday. It looks like a play by profit-takers, and it has been reported that founder Larry Diamond had sold a big bag of shares.

This is how news.com.au reported it: “Larry Diamond, co-founder of the Australian buy now, pay later company Zip Co, yesterday sold $100m of his shares in the company, following his resignation as director and US Chairman.

“It is understood that Diamond sold a significant portion of his 55 million shares yesterday morning at market open. According to the AFR, Diamond parted with 30 million shares at $3.35, netting him close to $100 million.”

Interestingly, the analysts surveyed on FNArena still like the company’s potential. The consensus view is up 10.4%. You’ll find below the specific price targets for the company.

Zip Co. (ZIP)

Let’s look at the big losers of last week and see what the analysts think.

The big losers…

Collins Food (CKF) slumped 9.16% to $7.93 with the view taken that it’s a victim of high interest rates and a challenged consumer, with investors dumping the shares following the release of the first-half results.

FNArena’s Danielle Ecuyer reported that Morgan Stanley reacted negatively, suggesting the company’s exposure to global quick-service restaurant (QSR) brands, usually associated with consistent same-store sales growth (SSSg), has led to “major concern” around soft results and earnings de-leveraging.

In contrast, the analysts hold out a hope for the stock, with the consensus tipping a 22.9% rise. The table below shows six out of six company assessors see a brighter future ahead. Let’s face it, take away food is a threat to health that few global citizens can resist!

Note that Morgan Stanley still likes CKF — really likes it with a 46.28% call, and this was only made on December 4!

A surprise stock price shocker

Siteminder (SDR) gave up 6.98% to $6.13. This is another company that the analysts see a decent future for, with a 13.2% rise tipped. Again, there are no contrarians bagging the operation that powers travel industry websites.

Citi’s assessment was on December 3, and they expect growth from SDR.

Let’s talk Audinate

Now to one of my currently disappointing favourites, Audinate, which lost 11.96% to $7.80 last week.

This is what the analysts think about this company that effectively is a superior rival to Bluetooth technology.

1. The target price is $10.47.
2. The expected average rise is 34.3%.
3. UBS is the most supportive of the company and their analyst maintains its faith in the longer-term fundamentals of Audinate Group, but recognise near-term uncertainties need to be worked through after a “soft” first quarter update by management.
4. Macquarie supports the long-term positive view and isn’t confident that the short-term issues will be solved as quickly as shareholders might want.

Here’s the table of views:

The story about Fletcher Building

Fletcher Building lost 8.93% to $2.60 last week, and this table shows why. It suggests we give this stock a wide berth.

Fletcher Building (FBU)

The table says it all!

And what about this lithium stock?

To the lithium price disintegration, and let’s look at

Liontown Resources (LTR), which dropped 14.38% to $0.63. Here’s the chart of LTR over the past five years.

Liontown Resources

The peak was $3.15 when Albemarle was stalking the company. That ended when Gina Rinehart joined the hunt and took 19.9% of the company. This led Albemarle to walk away from the $3 a share takeover offer and the share price slumped.

Right now, the chart doesn’t scream: “Buy me!” It reflects the global demand and price for lithium, which this is related to the lack of expected enthusiasm for electric vehicles (EVs).

If you believe that will change and EVs will have lithium batteries, then LTR looks attractive for the patient long-term investor.

Right now, the analysts have a price target of 80 cents, which implies 28% upside. However, not all experts agree on the company over the next year, with UBS and Macquarie holding negative views, while four out of six analysts see a 20%+ outlook for the share price. Bell Potter is a huge fan, tipping a 124% gain!

Liontown (LTR)

What about a more reliable lithium play?

For the record, Pilbara Minerals, which fell 9.27% to $2.25, is seen as the more reliable play in the lithium space. It has a 28.9% upside call for the average expected share price.

Let’s take a look at the varied views on the company’s future stock price:

Pilbara Minerals (PLS)

I’m toying with a double-play between both lithium miners, but the timing of my play is difficult. As an alert, I’ll be asking Fairmont Equities’ Michael Gable, who’ll be with me on our Boom Doom Zoom webinar this Thursday to look at the charts to see if it’s buy-time for these two stocks.

And here’s a miner

Finally, this is a company that has a habit of spiking and then putting in a shocker. It’s called Iluka Resources (ILU). The miner specialises in mineral sands exploration and production. It’s the world’s largest producer of zircon, titanium dioxide, rutile and synthetic rutile.

Last week, its share price tumbled 12.59% to $4.93 but the analysts like the company to an average rise of 38.5%, with five out of five liking the outlook for the business.

The most recent assessment of ILU came from Morgan Stanley today. This is what FNArena reported: “While Iluka Resources has secured an additional $400m in funding from Export Finance Australia, Morgan Stanley notes questions remain over the rates of return for the Eneabba Refinery. The broker highlights projected annual operating costs are approximately -10% worse than those outlined in the 2022 study. Additionally, project economics do not account for any costs incurred by the refinery for stockpiled ore provided by Iluka.

“Morgan Stanley maintains an equal-weight rating and a $6.70 target. The industry view remains ATTRACTIVE.”

ILUKA (ILU)

Clearly the likes of Iluka, LTR, PLS, along with the likes of BHP and Rio Tinto all require a stronger global economy and better commodity prices. Guessing these important drivers aren’t easy but lower interest rates should help the world economy, and we just have to hope that Donald Trump and his tariffs don’t derail an economic recovery.

That’s the best you have to punt on when thinking about going long miners. This chart below is interesting. It shows most commodities will sneak up in 2025, but precious metals are expected to do a tad better.

In conclusion…

I suspect 2025 will be a better year for miners, though 2026 could be pullback year for stocks, making 2027 looking like the year that’s likely to see a comeback for growth, Electric Vehicles and commodity prices. But that’s my best guess on subjects that are really hard to guess. I do suspect the likes of LTR and PLS are at share price levels that make them interesting for the long-term investor.