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 ratings from Wall Street analysts.
Here are this week’s stocks:
Concentrix (CNXC) – Concentrix is a global business services company that provides in customer engagement, technology solutions, and business performance optimization. It has a Strong Buy analyst consensus rating and an average price target of $64.50, implying a 28% upside potential from the current levels. The company’s P/E of 12.61x is trading at a 44.1% discount to the Technology sector’s median of 22.54.
Delta Air Lines (DAL) – Delta Air Lines is a major American airline known for its extensive domestic and international flight network. It currently has a P/E ratio of 8.07, which is down 64.2% from the Industrials sector’s median of 22.54. DAL stock has a Strong Buy consensus rating. It has an average price target of $60.31, indicating a 33.13% upside.
Crocs (CROX) – Crocs is a footwear company known for its lightweight, comfortable, and uniquely designed foam clogs. It has a Strong Buy analyst consensus rating and an average price target of $128.60, implying a 31.48% upside potential from the current levels. The company’s P/E of 6.18x is trading at a 65.2% discount to the Consumer Cyclical sector’s median of 17.74.