Value stocks are typically those that are currently trading at a price lower than their fundamental value. These stocks are expected to witness an increase in their stock prices as the market eventually recognizes their true value. Moreover, these stocks tend to be well-established and less volatile, making them a prudent investment choice amid the current market uncertainty.
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Using the TipRanks stock screener tool, we zeroed in on stocks with a Strong Buy rating from Wall Street analysts, and their price targets reflect an upside potential of more than 20%. Also, they carry an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks. Furthermore, these stocks seem to be undervalued, as the price-to-earnings (P/E) ratio is below their respective five-year averages.
According to these screeners, the following stocks are reasonably valued and are analysts’ favorites.
- T-Mobile US (NASDAQ:TMUS) – This company provides wireless communications services for postpaid and prepaid customers as well as wholesale customers. Analysts currently see an upside potential of 32.1% in TMUS stock. Also, the stock is trading at 26.7 times earnings, which reflects a discount of about 42% from the five-year average. Importantly, two Buy ratings were assigned to the stock yesterday following the approval of a share buyback program worth up to $19 billion.
- The Coca-Cola Co. (NYSE:KO) – This company provides non-alcoholic beverages. Based on the ratings of the eleven analysts, the stock has an average price target of $71.82, which implies a 23.1% upside potential from current levels. KO stock trades at 24.3x earnings, which is 20.9% below its five-year average.
- NextEra Energy (NYSE:NEE) – NextEra is an electric power and energy infrastructure company. The company’s average price target implies a consensus upside of 28.1%. Its price-to-earnings (P/E) ratio of 16.3x is 53.9% lower than its five-year average.
- Charles Schwab (NYSE:SCHW) – SCHW is the nation’s largest discount broker. The stock has a top analyst consensus upside of 27.6%. The stock trades at 16.9 times trailing earnings, reflecting a 21.9% discount from the five-year average.
- Enterprise Products Partners (NYSE:EPD) – The midstream energy services provider has a 12-month price target of $32.63, which implies a nearly 23% upside. It’s trading at 10.7 times earnings, 10.5% lower than its five-year average.
