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
NICE Ltd. (NICE) – This software company provides cloud and on-premises solutions for customer experience, compliance, and financial crime prevention. It has a Strong Buy analyst consensus rating and an average price target of $206.14, implying a 39.05% upside potential from the current levels. The company’s P/E of 19.82x reflects a 29.5% discount to the Technology sector’s median of 28.10.
Delta Air Lines (DAL) – This major American airline provides domestic and international passenger and cargo services. Its average price target of $67.50 implies a 14.93% upside potential from the current levels. DAL stock has a Strong Buy consensus rating. Trading at a P/E of 8.48x, the company is valued 66.1% below the Industrial sector’s median multiple of 25.00.
Post Holdings (POST) – This consumer packaged goods company is known for its branded and private-label foods. It has a Strong Buy analyst consensus rating and an average price target of $127.70, implying a 17.73% upside potential from the current levels. With a P/E ratio of 18.33x, the stock is priced at an 18.1% discount to the Consumer Defensive sector’s median of 22.38.
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.
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