Last week we highlighted 5 undervalued stocks from 5 different sectors within the S&P 500—Industrials, Healthcare, Consumer Discretionary, Energy and Information Technology. This week we’ll cover 6 more seemingly undervalued stocks based on their P/E ratios from the remaining 6 sectors—Consumer Staples (aka Consumer Defensive), Financials, Materials, Real Estate and Utilities.
The following list of stocks have intrinsic values that are below their current prices and analysts’ target prices and also have Price-to-Earnings(P/E) ratios that are:
· Lower than their sector peers
· Lower than their sector average
· Lower than their industry average
The P/E ratio is often used to determine whether a stock is overvalued, fairly valued, or undervalued. Assuming earnings for a company stay constant, the P/E ratio can be seen as the number of years it would take to earn back your initial investment. Let’s say you bought 100 shares of Acme Corporation for $1,000 and earnings are $1.00 per share. Your 100 shares will earn $100 in a year. Therefore, your investment of $1,000 will be earned back in 10 years, giving ACME a P/E ratio of 10.
P/E Ratio = Stock Price / EPS
“If you remember nothing else about p/e ratios, remember to avoid stocks with excessively high ones. You'll save yourself a lot of grief and a lot of money if you do. With few exceptions, an extremely high p/e ratio is a handicap to a stock, in the same way that extra weight in the saddle is a handicap to a racehorse.” — Peter Lynch
Comcast Corporation (CMCSA) – Communication Services
Worldwide media and technology company, providing residential and business connectivity services.
P/E: 10.30
Sector Avg (Communications Services): 25.22
Industry Avg (Telecom Services): 11.27
UVstocks.io Rating: 4.1
Alpha Spread: Undervalued
Barchart: Moderate Buy
Barron’s: Over
Benzinga: Buy
Business Insider: Buy
CNN: Over
Market Watch: Over
Stock Analysis: Buy
TipRanks: Moderate Buy
Zacks: Hold
Current Price: $38.22
Avg Price Target: $48.11
Intrinsic Value: $64.46
Altria Group, Inc. (MO) – Consumer Staples
Manufactures and sells tobacco products, offering cigarettes via the Marlboro brand.
P/E: 9.09
Sector Avg (Consumer Staples): 25.20
Industry Avg (Tobacco): 16.70
UVstocks.io Rating: 3.3
Alpha Spread: Undervalued
Barchart: Hold
Barron’s: Hold
Benzinga: Buy
Business Insider: Hold
CNN: Hold
Market Watch: Hold
Stock Analysis: Buy
TipRanks: Moderate Buy
Zacks: Hold
Current Price: $53.84
Avg Price Target: $55.31
Intrinsic Value: $71.95
Everest Group, Ltd. (EG) – Financials
Global provider of insurance and reinsurance products.
P/E: 5.58
Sector Avg (Financials): 20.60
Industry Avg (Insurance): 8.94
UVstocks.io Rating: 4.1
Alpha Spread: Undervalued
Barchart: Moderate Buy
Barron’s: Over
Benzinga: Buy
Business Insider: Buy
CNN: Over
Market Watch: Over
Stock Analysis: Buy
TipRanks: Moderate Buy
Zacks: Hold
Current Price: $356.64
Avg Price Target: $428.50
Intrinsic Value: $808.29
FMC Corporation (FMC) – Materials
Provider of crop protection, plant health, and professional pest and turf management products.
P/E: 4.33
Sector Avg (Materials): 24.22
Industry Avg (Agricultural Inputs): 14.77
UVstocks.io Rating: 4.1
AlphaSpread: Undervalued
Barchart: Moderate Buy
Barron’s: Over
Benzinga: Neutral
Business Insider: Buy
CNN: Over
Market Watch: Over
Stock Analysis: Hold
TipRanks: Moderate Buy
Zacks: Hold
Current Price: $50.15
Avg Price Target: $70.17
Intrinsic Value: $86.09
VICI Properties Inc. (VICI) – Real Estate
Real estate investment trust that owns a portfolio of gaming, hospitality and entertainment destinations.
P/E: 10.68
Sector Avg (Real Estate): 43.87
Industry Avg (REIT-Diversified): 21.722
UVstocks.io Rating: 4.7
Alpha Spread: Undervalued
Barchart: Strong Buy
Barron’s: Buy
Benzinga: Outperform
Business Insider: Buy
CNN: Buy
Market Watch: Buy
Stock Analysis: Buy
TipRanks: Strong Buy
Zacks: Hold
Current Price: $28.79
Avg Price Target: $35.30
Intrinsic Value: $43.54
The AES Corporation (AES) – Utilities
Diversified power generation and utility company that owns and operates power plants to generate and sell power to customers that include utility companies, industrial users and other intermediaries.
P/E: 9.04
Sector Avg (Utilities): 21.89
Industry Avg (Utilities-Diversified): 20.07
UVstocks.io Rating: 4.1
Alpha Spread: Undervalued
Barchart: Moderate Buy
Barron’s: Over
Benzinga: Buy
Business Insider: Buy
CNN: Over
Market Watch: Over
Stock Analysis: Buy
TipRanks: Moderate Buy
Zacks: Hold
Current Price: $13.00
Avg Price Target: $19.33
Intrinsic Value: $29.80
This will be our last post in 2024. We’ll pick it back up in the New Year!
P.S. I'm sharing some investment information, but it's important to remember that what I'm providing is for informational purposes only and should not be construed as financial advice.
Happy Investing,
John
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