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.
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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 30% upside potential from current levels.
Here Are This Week’s Stocks
Strategy (MSTR) – This business intelligence and analytics company is known for its enterprise software and large-scale Bitcoin holdings. It has a Strong Buy analyst consensus rating and an average price target of $481.08, implying a 154.55% upside potential from the current levels. The company’s P/E of 8.54x reflects a 72.9% discount to the Technology sector’s median of 31.52.
MSTR stock gained 2.89% on Tuesday. Yesterday, the company disclosed it bought 10,624 Bitcoin tokens between December 1 and December 7 for $962.7 million. This brings Strategy’s total Bitcoin holdings to more than $60.6 billion.
CleanSpark (CLSK) – This Bitcoin mining and energy technology company focuses on efficient, sustainable mining operations. Its average price target of $24.30 implies a 63.64% upside potential from the current levels. CLSK stock has a Strong Buy consensus rating. Trading at a P/E of 12.6x, the company is valued 60% below the Technology sector’s median multiple of 31.52.
Shares of the company rose about 7% on Tuesday. In its November update, the company said it produced 587 BTC, bringing total holdings as of November 30 to 13,054.
Encompass Health (EHC) – The company provides inpatient rehabilitation services through its nationwide network of rehabilitation hospitals. It has a Strong Buy analyst consensus rating and an average price target of $142.80, implying a 32.17% upside potential from the current levels. With a P/E ratio of 21.26x, the stock is priced at a 19.2% discount to the Healthcare sector’s median of 26.31.
Last week, Encompass Health reaffirmed FY25 revenue guidance of between $5.905 billion and $5.955 billion, and EPS in the range of $5.22 to $5.37.
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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