Value investing involves picking stocks that appear to be trading lower than their intrinsic or book value. This approach involves looking for undervalued stocks with strong fundamentals and growth potential. By investing in these stocks, investors can achieve significant returns once the market recognizes their true value.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
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:
Cigna (CI) – Cigna is an insurance and health services provider. Its average price target of $365.39 implies a 21.87% upside potential from the current levels. The company’s P/E of 24.1x is trading at a 16% discount to the Healthcare sector’s median of 28.69.
Delta Air Lines (DAL) – DAL is a global airline that provides passenger and cargo services. It currently has a P/E ratio of 12.4x, which is down 49% from the Industrial sector’s median of 24.33. The average DAL stock price target is $83.07, implying a 29.68% upside potential.
Dell Technologies (DELL) – This multinational company provides personal computers and enterprise solutions. DELL stock is trading at 20 times earnings, which reflects a discount of 39.4% from the Technology sector’s median of 33.03. The average DELL price target is $147.74, which implies a solid upside potential of 33.99% from current levels.
