TGT, CSCO, or DAL: Which Value Stock Could Offer the Highest Return?

Amid the ongoing macro uncertainty, value stocks could be an attractive addition to investors’ portfolios. Value stocks trade below their intrinsic value, thus having the potential to outperform the market over the long term. These stocks are often undervalued relative to their fundamentals and growth potential. Using TipRanks’ Stock Comparison Tool, we placed Target (TGT), Cisco (CSCO), and Delta Air Lines (DAL) against each other to find the value stock that could offer the highest return.

Target (NYSE:TGT)

Big-box retailer Target has been struggling to thrive due to intense competition, company-specific issues, and macro pressures. The company delivered disappointing results for the first quarter of Fiscal 2025 and lowered its full-year sales guidance, blaming tariff uncertainty, weak discretionary spending, and consumer backlash to the rollback of key DEI (diversity, equity, and inclusion) policies. 

Target has been losing market share to other retailers. It has greater exposure to discretionary items than groceries or essentials compared to rivals like Walmart (WMT). This is disadvantageous for Target, as consumers are cautious about their discretionary spending in a challenging macro backdrop.

Currently, TGT stock trades at a forward P/E or price-to-earnings (adjusted) multiple of 13.2x, which is about 19.6% below the sector average.

Is TGT Stock a Buy, Hold, or Sell?

Recently, Guggenheim analyst John Heinbockel cut the price target for Target stock to $115 from $155, while maintaining a Buy rating, saying “challenging fundamentals have prevailed over a modest valuation during the past year,” with the stock underperforming the S&P 500 (SPX) amid a 20% reset in 2026 EPS expectations.

The 5-star analyst noted that the operating outlook for Target is uncertain due to the sequential pressure on comparable sales. That said, Heinbockel remains bullish on TGT stock due to its valuation, with the P/E multiple based on 2025 earnings appearing “undemanding” at 13.2x, compared to nearly 16x a year ago. The analyst also highlighted TGT’s dividend and potential buyback efforts, which together represent an 8% total shareholder return.

Overall, Wall Street has a Moderate Buy consensus rating on Target stock based on 10 Buys, 20 Holds, and one Sell recommendation. The average TGT stock price target of $103.04 indicates about 6% upside potential from current levels. TGT stock is down 28% year-to-date. Target stock’s dividend yield stands at 4.6%.

See more TGT analyst ratings

Cisco Systems (NASDAQ:CSCO)

Cisco stock has risen about 12% so far in 2025, as the networking and security solutions provider is expected to gain from artificial intelligence (AI)-led demand. The company recently delivered better-than-projected earnings and revenue for the third quarter of Fiscal 2025.

Notably, Cisco reported more than $600 million in AI infrastructure orders from web companies, bringing the total for Fiscal 2025 to more than $1.25 billion. In fact, the company said that the figure surpassed the $1 billion mark a quarter ahead of its schedule.

Also, Cisco’s security products business is gaining from the $28 billion Splunk acquisition. In Q3 FY25, CSCO reported a 54% rise in its security products revenue to $2.01 billion. That said, the company lagged analysts’ expectations for this business.

Looking ahead, Cisco is focused on capturing further AI opportunities through continued innovation and strategic partnerships. The company is one of the U.S. tech giants that have partnered with Saudi Arabia’s AI startup HUMAIN to offer AI tech. CSCO stock currently trades at a forward P/E (adjusted) multiple of 17.4x, which is about 23% below the sector average.

Is Cisco a Buy or Sell Stock?

Following the Q3 FY25 print, UBS analyst David Vogt reiterated a Hold rating on Cisco stock with a price target of $70. The 4-star analyst noted that the company modestly exceeded Wall Street’s Q3 FY25 estimates, with stronger Networking growth driving the revenue beat while margin and EPS gained from a more favorable tariff backdrop than accounted for in the guidance and a lower tax rate.

Vogt highlighted management’s commentary about the strength in webscale demand being broad-based, with three of the top six webscale customers growing triple-digits. The company also mentioned its recent deals with Saudi Arabia and the UAE, indicating that the sovereign opportunity is an additional driver of its accelerating AI business. Despite the favorable AI trends and the acceleration in the core business, Vogt prefers to be on the sidelines, as he thinks that the improved performance is already priced into CSCO stock, which is trading at a P/E multiple of about 16x his FY26 EPS estimate of $4.00.

With nine Buys and seven Holds, Cisco stock earns a Moderate Buy consensus rating on TipRanks. The average CSCO stock price target of $70.77 implies about 7.1% upside potential from current levels. CSCO stock offers a dividend yield of 2.4%.

See more CSCO analyst ratings

Delta Air Lines (NYSE:DAL)

Delta Air Lines is one of the major carriers in the U.S. Despite rising about 14% over the past month due to easing tariff pressures, DAL stock is still down nearly 16% year-to-date on concerns of a slowdown in travel demand due to macro uncertainty.

Back in April, Delta announced better-than-anticipated earnings for the first quarter of 2025, but pulled back its full-year outlook, saying that the tariffs under the Trump administration were weighing on bookings. At that time, Delta Air Lines said that international and premium travel, which have been growing faster than the coach cabin business, have been relatively resilient.

At a forward P/E (adjusted) multiple of 9.41x, DAL stock trades at a 52% discount to the sector average.

Is DAL Stock a Buy or Sell?

Recently, UBS upgraded Delta Air Lines stock and rival United Airlines (UAL) to Buy from Hold, citing an improved international and premium travel demand, increased revenue expectations, and a stabilizing economic outlook. Analyst Thomas Wadewitz increased the price target for DAL stock to $66 from $46. The 4-star analyst stated that the upgrade follows the relief due to the 90-day agreement between the U.S. and China and framework with the U.K., which has shifted his base case from a potential downturn to “stability / slow growth.”

Also, based on recent commentary of the airlines, including a May 6 meeting with Delta, Wadewitz noted “stability in demand in April and May.” He added that fare data indicates a 410 basis points year-over-year improvement for Delta and 180 basis points for United Airlines in April. UBS raised its 2025 earnings estimates for Delta from $5.05 to $5.64 per share.

On TipRanks, DAL stock scores a Strong Buy consensus rating based on 13 Buys and two Hold recommendations. The average DAL stock price target of $60.93 implies about 20% upside potential. DAL stock offers a dividend yield of 1.2%.

See more DAL analyst ratings

Conclusion

Among the three value stocks discussed here, Wall Street is highly bullish on Delta Air Lines stock and cautiously optimistic on Target and Cisco. Analysts see higher upside potential in DAL stock compared to the other two value stocks. Wall Street is bullish on Delta Air Lines due to its solid execution, diversified revenue streams, and strong fundamentals.