At least by Sebastian's analysis, Facebook has a lot to recommend it. Its one of three companies whose shares appreciated in each of the last four rebound periods after a correction. On average, its stock was up 15.4% six months after those downturns. And it had very little volatility in those recoveries; its standard-deviation figure was just 0.07.
But it didn't make Sebastian's cut of best bets because of all the controversy that continues to surround the company.
"There are likely lingering overhangs impacting Facebook shares (e.g. data/privacy, slowing growth/usage, declining margins, leadership questions) that could dampen the recovery, without a clean quarterly beat and/or substantive evidence that the company is emerging from crisis management," Sebastian said in his note.
Still, he has an overweight rating on Facebook's shares and a $195 price target. In recent trading, the company's stock was at $132.29 a share.