In some sectors, contrarian investing creates more wealth: 4 stocks from the natural gas sector with an upside potential of up to 22%
There are many sectors and stocks, which from being the most sorted one on the Street, get into a phase, where both institutional and retail interest comes down dramatically. For a period of time, they don't come in the news. But for a large sector which is fulfilling an important basic need like energy, it cannot be kept down forever. Just have a look at power; it was down and out for more than 12 years and then a rebound happened. This is not to say that a rebound is around the corner; it is just that when an important sector is under pressure, the ecosystem tries to find a way. Probably the corporate action in Gujarat Gas and others is an example of that. Now if one looks at natural gas related companies, be it city gas distribution companies or others, they have been under pressure for quite some time. In a raging bull run, they have been the ones which are far away from their previous highs.