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
Autoliv (ALV) – This automotive safety supplier develops safety systems, such as airbags, seatbelts, and steering wheels. It has a Strong Buy analyst consensus rating and an average price target of $127.30, implying a 12.01% upside potential from the current levels. The company’s P/E of 12.16x is trading at a 35.5% discount to the Consumer Cyclical sector’s median of 18.84.
Uber Technologies (UBER) – Uber provides ride-hailing and food and package delivery services. Its average price target of $103.63 implies a 16.67% upside potential from the current levels. UBER stock has a Strong Buy consensus rating. The company’s P/E of 15.59x is trading at a 35.8% discount to the Technology sector’s median of 24.30.
Tenet Healthcare (THC) – This healthcare services company operates hospitals and surgical centers, and provides healthcare management and support services. It has a Strong Buy analyst consensus rating and an average price target of $199.13, implying a 24.84% upside potential from the current levels. The company’s P/E of 10.26x is trading at a 60% discount to the Healthcare sector’s median of 25.64.
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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