Investors looking for undervalued stocks in the current volatile market may want to pay close attention to Wall Street’s latest picks. These stocks stand out for their solid fundamentals, attractive valuations, and catalysts that could drive meaningful gains in the months ahead.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Before we go further, let’s define value stocks. These are companies that look undervalued compared to their true worth, trading at lower price-to-earnings or price-to-book ratios. When the market eventually recognizes their real value, they can deliver strong gains.
Now, let’s check the three value stocks that analysts have spotlighted. Each carries a “Strong Buy” consensus rating but also offers more than 20% upside potential from current levels.
Here Are This Week’s Stocks
LKQ (LKQ) – LKQ is a global provider of alternative and specialty auto parts, supplying recycled, refurbished, and aftermarket components to the automotive repair industry. It has a Strong Buy analyst consensus rating and an average price target of $41.25, implying a 22.15% upside potential from the current levels. The company’s P/E of 12.63x reflects a 37.9% discount to the Consumer Cyclical sector’s median of 20.34.
The company’s board of directors has launched a strategic review that includes exploring a potential sale of the entire company. The process follows pressure from activist investor Ananym Capital, which has urged LKQ to sell parts of its business, including its European operations, to boost shareholder returns.
United Airlines (UAL) – United Airlines is a major U.S. airline that operates domestic and international passenger and cargo flights worldwide. Its average price target of $141.79 implies a 31.58% upside potential from the current levels. UAL stock has a Strong Buy consensus rating. Trading at a P/E of 10.53x, the company is valued 60.6% below the Industrials sector’s median multiple of 26.72.
Last week, the company reported mixed results for the fourth quarter of 2025. The performance was driven by higher travel demand, boosting sales of both premium seats and basic tickets.
Alkermes (ALKS) – This biopharmaceutical company develops and commercializes medicines for neuroscience and oncology. It has a Strong Buy analyst consensus rating and an average price target of $46.17, implying a 39.44% upside potential from the current levels. With a P/E ratio of 16.38x, the stock is priced at a 42.1% discount to the Healthcare sector’s median of 28.31.
The company recently highlighted strong momentum for ALKS 2680, its lead orexin‑2 receptor agonist, which is moving into Phase 3 trials for narcolepsy after positive Phase 2 data and an FDA Breakthrough Therapy designation.
What Is TipRanks’ Smart Value Newsletter?
TipRanks’ Smart Value Newsletter helps investors identify high-potential value stocks with strong fundamentals and long-term growth potential, based on TipRanks’ data and analysis. The newsletter, published weekly, includes macroeconomic, market-wide, and company-specific analysis to help investors understand the trends that affect value investing.
Stay ahead of the market – subscribe now!