Contrarian investing is a simple concept: buy when others are selling and sell when others are buying. The idea is in line with the oft-cited Warren Buffett maxim to be “fearful when others are greedy and greedy when others are fearful.” The stocks listed below have plenty of detractors for various reasons, but they are very appealing to contrarian investors. 

Also, the stocks below are all facing some mix of fear and selling pressure so, bearing Buffett’s advice in mind, there’s reason to be greedy here. At the same time, markets are currently characterized by “extreme greed,” according to the commonly cited index. It’s certainly an interesting if volatile moment.  

The stocks also span a decent spectrum of the market, and aren’t concentrated in any single major area.   

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) has probably been the most talked about stock of 2023. When all is said and done, it very well may finish 2023 as the most discussed stock. All of the attention is due to the meteoric rise of AI and its positioning as the chipmaker to AI-oriented firms. 

The rise has been dramatic. NVDA shares have nearly tripled year to date at the time of writing, and that has many investors speculating that a price decline is inevitable. 

Of course, the possibility exists and I’ve recognized it in other recent articles. But here’s the thing: as soon as Nvidia released earnings and rocketed upward in late May, the notion gained traction. When shares hit $380 overnight on rapidly increasing AI sales projections, it was suddenly overpriced. 

Skepticism was high then, but shares have risen again to $430 since. I think Nvidia shares can continue to rise simply because there is so much hype for second-quarter results. That is exactly what Wall Street is saying given that target prices range as high as $600. For the contrarian investor, this the exact stock for you.

Snap (SNAP)

Snap (NYSE:SNAP) is sending a mix of positive and negative signals that gives contrarian investors hope. The positive news is that Snapchat’s user base increased by 15% in the first quarter above Q1 2022 levels. 

At the same time, ad prices declined by 18% during the same period as overall ad spend remained soft. So, Snap saw its user base increase while monetization declined. There’s a way to spin a positive narrative out of that. It goes like this: Snap can count on rising ad prices at some point in the future. WHile the user base increased, the overall revenue potential of the company increased. 

I believe that investors currently agree with that basic narrative. Prices are already at consensus analyst prices meaning it’s fully sold, and the majority of analysts with coverage rate it a hold. Most investors are probably ready to stand firm. 

Chevron (CVX)

Chevron (NYSE:CVX) stock has trended lower in 2023 overall as oil prices have moved downward. If there’s good news in that it is that prices are expected to average $79 in 2023, which is higher than current prices at $70. 

Chevron’s first quarter was actually better than a year earlier despite falling prices. Revenues improved slightly, as did earnings. However, 2023 doesn’t promise to be the bonanza that 2022 turned out to be. 

This has investors souring on CVX stock, and in selling mode since mid-April just before the most recent earnings update was released. Contrarians should buy-in for a few reasons. One of those reasons is that Chevron pays a dividend yielding nearly 4% that hasn’t been reduced since 1988. 

Another is that from a purely fundamental perspective, CVX stock could be worth $189 per share. It currently trades for $152. Chevron is a great place for investors to place capital as a bet on positive oil news simply because it’s relatively steady. That’s because the firm reinvests its windfalls into investors. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.