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:
FedEx (FDX) – This global courier and logistics company provides express shipping, freight, and supply chain services. It has a Strong Buy analyst consensus rating and an average price target of $268.38, implying a 13.03% upside potential from the current levels. The company’s P/E of 13.96x is trading at a 43.7% discount to the Industrials sector’s median of 24.78.
Micron (MU) – This semiconductor company provides memory and storage solutions, including DRAM and NAND flash. Its average price target of $156.26 implies a 27.68% upside potential from the current levels. MU stock has a Strong Buy consensus rating. The company’s P/E of 21.64x is trading at a 26.9% discount to the Technology sector’s median of 29.62.
Thermo Fisher (TMO) – Thermo Fisher provides laboratory equipment, diagnostic tools, software, and services to allow scientific research and pharmaceutical manufacturing. It has a Strong Buy analyst consensus rating and an average price target of $548.67, implying a 31.98% upside potential from the current levels. The company’s P/E of 24.57x is trading at a 9.3% discount to the Healthcare sector’s median of 27.08.