Amid the chaos caused by President Trump’s tariffs, Value stocks present opportunities for investors seeking stability in the market. Value investing involves picking stocks that appear to be trading lower than their intrinsic or book value. This approach involves looking for undervalued stocks with strong fundamentals and growth potential. By investing in these stocks, investors can achieve significant returns once the market recognizes their true value.
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 or Moderate Buy ratings from Wall Street analysts.
Here are this week’s stocks:
Albertsons Companies (ACI) – Albertsons is one of the largest food and drug retailers in the United States. It has a Moderate Buy analyst consensus rating and an average price target of $23.56, implying a 12.51% upside potential from the current levels. The company’s P/E of 12x is trading at a 44.2% discount to the Consumer Defensive sector’s median of 21.51.
Western Alliance (WAL) – This bank holding company offers commercial banking solutions and operates multiple banking brands across key U.S. markets. It currently has a P/E ratio of 8.8, which is down 21.1% from the Financial sector’s median of 11.15. WAL stock has a Strong Buy consensus rating. It has an average price target of $106, indicating a 73.77% upside.
Nextracker (NXT) – Nextracker provides intelligent solar trackers and software solutions for utility-scale and ground-mounted distributed generation solar projects. The stock is trading at 9.75 times earnings, which reflects a discount of 51.5% from the Technology sector’s median of 20.11. Also, the stock has a Strong Buy consensus rating, and the average NXT stock price target is $56.71, which implies an upside of 53.27% from current levels.