Value stocks offer stability for investors by focusing on companies that seem underpriced compared to their actual worth. This approach involves looking for stocks with strong fundamentals and growth potential. By investing in these stocks, investors can achieve significant returns once the market recognizes their true value.
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One way to identify value stocks is by comparing a company’s price-to-earnings (P/E) ratio with industry averages or its historical P/E ratios. This ratio compares a company’s stock price to its earnings per share. It must be noted that a lower P/E ratio may indicate that the stock is undervalued. Along with this, we have zeroed in on stocks that have received Strong Buy ratings from Wall Street analysts.
Here are this week’s stocks:
Abbott Laboratories (ABT) – This healthcare company develops medical devices, diagnostics, and nutritional products. It has a Strong Buy analyst consensus rating and an average price target of $146.65, implying an 11.41% upside potential from the current levels. The company’s P/E of 17.13x is trading at a 35.7% discount to the Healthcare sector’s median of 26.65.
Uber Technologies (UBER) – Uber provides ride-hailing and food and package delivery services. Its average price target of $102.32 implies a 13.54% upside potential from the current levels. UBER stock has a Strong Buy consensus rating. The company’s P/E of 16.08x is trading at a 33.6% discount to the Technology sector’s median of 24.23.
United Airlines (UAL) – This major U.S. airline provides domestic and international air travel services. It has a Strong Buy analyst consensus rating and an average price target of $96.20, implying a 10.83% upside potential from the current levels. The company’s P/E of 7.87x is trading at a 67.5% discount to the Industrials sector’s median of 24.23.