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3 value stocks to buy that are currently undervalued by up to 19%

Charles Sainsbury
17. 4. 2024
4 min read

In recent months, attractive investment opportunities have emerged in the financial markets in sectors that have traditionally been among the cornerstones of global industry. With low P/E ratios and surprisingly strong quarterly results, there are some stable companies that may currently be ideally positioned for growth.

We take a look at three companies whose strategic alignment and solid financial fundamentals may present investment opportunities that should not escape the attention of investors. Analysts predict significant earnings and revenue growth in the coming year, suggesting that these companies have the potential to beat market expectations and become a profitable part of a diversified portfolio.

Johnson & Johnson $JNJ-1.8%

Johnson & Johnson, the global giant in Pharmaceutical sector, represents an attractive investment opportunity due to its robust financial metrics and stable position. The company has achieved a 2023 ratio of P/E OF 12.8, which is significantly lower than the median of its peers, which stands at 18. This attractive valuation is underpinned not only by historical performance, but also by solid fundamentals in drug discovery and development.

JNJ
$144.38 -$2.59 -1.76%
Fair Price: $254.97
Qxjacn: 01.25%
Undervalued
Overvalued
Dostupné pouze členům Bulios Black

Over the course of 2023 Johnson & Johnson reported slightly volatile results, with earnings per share averaging $2.49 in the first two quarters, 3% below market expectations. However, in the third and fourth quarters, the company quickly rebounded and beat market expectations by 5%. These results reflect the ability to adapt to changing market conditions and respond effectively to global healthcare challenges.

JNJ
$144.38 -$2.59 -1.76%

For 2024, analysts estimate that Johnson & Johnson's earnings per share will reach $10.65, which on expected revenue of $88.4 billion would represent solid growth from $85.15 billion the previous year. These forecasts are backed by anticipated continued growth in areas such as pharmaceuticals and medical technology, meaning the company should maintain its position leader in innovation and the healthcare industry.

Exxon Mobil $XOM+1.3%

Exxon Mobil, one of the leading companies in the oil and gas industry, continues to profile itself as a key player in the global energy industry. In 2023, the company achieved a price-to-earnings-to-growth (PEG) ratio of 0.63, well below the average PEG of the hydrocarbon sector, which is around 0.98. This value suggests that Exxon Mobil stock may offer greater upside potential compared to its competitorswhich may be advantageous to investors.

XOM
$114.86 $1.44 +1.27%
Fair Price: $915.35
Ufyylp: 4.91%
Undervalued
Overvalued
Dostupné pouze členům Bulios Black

The company's financial results Exxon Mobil last year were mixed, but some quarters produced positive surprises. In the second and third quarters, the company beat market expectations for EPS and saw growth ahead of analysts' forecasts. Conversely, it faced challenges in the first and fourth quarters that impacted its financial results, although it still beat estimates by 10.5%.

XOM
$114.86 $1.44 +1.27%

For 2024, Exxon Mobil is expected to achieve EPS of $8.28, slightly lower than the previous year's result of $8.81, with revenue forecasts suggesting a decline to $306.9 billion compared to $333.7 billion last year. But the company has the potential to beat expectations, especially given its involvement in projects in high-risk, high-reward areas.

General Motors $GM-2.3%

General Motors, a traditional automaker, has recently refocused on traditional internal combustion vehicles in response to waning demand for electric vehicles. In 2023, GM has shown that its strategic turnaround can yield positive results as the stock has achieved a forward ratio of 4.83, significantly lower than the industry average of around 10. This low multiple suggests that$GM-2.3% stock may be undervalued and offers potential for investors looking for value in the automotive industry.

GM
$43.09 -$1.02 -2.31%
Fair Price: $68.07
Eefkxv: 86.10%
Undervalued
Overvalued
Dostupné pouze členům Bulios Black

Through 2023 General Motors posted several notable quarterly successes, particularly in the first and third quarters, where the company beat market expectations with an average earnings surprise of 15.5%. These results are a testament to the efficiency of its operations and its ability to adapt to rapidly changing market conditions, which is key to staying competitive in the highly competitive automotive industry.

GM
$43.09 -$1.02 -2.31%

For 2024, analysts estimate that the company will achieve earnings per share of $8.3, which is a significant increase from $7.1 the previous year, and sales are also expected to increase. This forecast reflects the company's optimistic outlook, and if demand for traditional internal combustion vehicles continues to grow, sales could grow solidly. This potential for growth, together with the approach to change in the industry, may make General Motors an attractive option for investors looking for stable and profitable assets.

Disclaimer: There is plenty of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.

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