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
EPAM Systems (EPAM) – This global digital transformation and IT services company specializes in software engineering, consulting, and product development. It has a Strong Buy analyst consensus rating and an average price target of $208.45, implying a 36.15% upside potential from the current levels. The company’s P/E of 23.53x reflects a 19.6% discount to the Technology sector’s median of 29.25.
In major updates, the company recently appointed Balazs Fejes as CEO and President, effective September 1. Also, TD Cowen analyst Bryan Bergin upgraded EPAM stock to Buy from Hold and raised the price target to $205 from $192. He noted EPAM’s fast growth, improving profits, and low stock price makes it a strong bet with twice the potential upside compared to the risk.
Anheuser-Busch InBev (BUD) – This company produces a wide portfolio of beer brands, including Budweiser, Stella Artois, and Corona. Its average price target of $82.25 implies a 39.48% upside potential from the current levels. BUD stock has a Strong Buy consensus rating. Trading at a P/E of 16.50x, the company is valued 27% below the Consumer Defensive sector’s median multiple of 22.61.
Anheuser-Busch recently disclosed plans to invest $9.2 million in its Cartersville Brewery to boost Michelob ULTRA production. This investment is part of the company’s $300 million push to strengthen U.S. manufacturing.
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 $269.90, implying a 19.59% upside potential from the current levels. With a P/E ratio of 13.38x, the stock is priced at a 46.1% discount to the Industrials sector’s median of 24.81.
The company is expected to release results for the fiscal first quarter of 2026 on September 18. Wall Street analysts expect the company to report earnings of $3.68 per share, up 2.2% from the prior-year quarter. Based on options pricing, traders expect FDX stock to move roughly 9% in either direction after the report.
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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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