Wall Street analysts are highlighting three value stocks that could deliver strong returns, each carrying a “Strong Buy” consensus rating and projected upside of more than 20%. But before moving ahead, it’s important to understand what value stocks really are.
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Value stocks are companies that appear undervalued compared to their true worth, often trading at lower price-to-earnings or price-to-book ratios than the broader market. When sentiment shifts and the market recognizes their real value, these stocks can generate significant gains.
In today’s environment of market volatility and high interest rates, value stocks are appealing as they offer both stability and upside potential.
Here Are This Week’s Stocks
Wyndham Hotels (WH) – This global hotel franchising company is known for its wide portfolio of hotel brands. It has a Strong Buy analyst consensus rating and an average price target of $90.94, implying a 27.21% upside potential from the current levels. The company’s P/E of 16.6x reflects an 11.3% discount to the Consumer Cyclical sector’s median of 18.72.
WH stock was up 2.1% today. Recently, Wells Fargo started coverage on the stock with a Hold rating and an $82 price target. The firm noted that the stock looks inexpensive, but believes the current estimates are too high. Wells plans to wait for better RevPAR or fee growth before turning more positive.
Matador Resources (MTDR) – This independent energy firm explores, develops, produces, and acquires oil and natural gas resources. Its average price target of $57.67 implies a 40.11% upside potential from the current levels. MTDR stock has a Strong Buy consensus rating. Trading at a P/E of 6.63x, the company is valued 57.5% below the Energy sector’s median multiple of 15.6.
MTDR stock gained about 3% on Tuesday. Last month, the company reported its strong third-quarter results. Also, Matador raised its full-year 2025 guidance and provided a positive outlook for 2026, reflecting confidence in its operations and midstream expansion strategy.
Copa Holdings (CPA) – This airline group is known for its efficient Panama-based hub and strong regional connectivity. It has a Strong Buy analyst consensus rating and an average price target of $155.25, implying a 26% upside potential from the current levels. With a P/E ratio of 8.09x, the stock is priced at a 65.6% discount to the Industrials sector’s median of 23.52.
Yesterday, TD Cowen analyst Thomas Fitzgerald, CFA, issued a Buy rating on CPA stock, citing strong performance, resilient traffic trends, and a positive outlook with tighter margin guidance.
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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