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
Option Care Health (OPCH) – This company provides home and alternate site infusion therapy services across the United States. It has a Strong Buy analyst consensus rating and an average price target of $36.50, implying a 35.84% upside potential from the current levels. The company’s P/E of 21.25x reflects a 15% discount to the Healthcare sector’s median of 25.01.
OPCH stock was up about 1% on Tuesday. The company is scheduled to report its third-quarter results on October 30. Analysts expect the company to report earnings of $0.43 in Q3, up 4.9% from the same quarter last year. Meanwhile, analysts project revenues of nearly $1.41 billion versus $1.28 billion in the year-ago quarter.
SkyWest (SKYW) – SkyWest operates a regional airline in the United States. Its average price target of $127.40 implies a 25.79% upside potential from the current levels. SKYW stock has a Strong Buy consensus rating. Trading at a P/E of 9.99x, the company is valued 59.7% below the Industrials sector’s median multiple of 24.81.
SKYW stock has gained 3% today. The company will release its Q3 results on October 30. SkyWest is expected to report revenues of $1.03 billion on earnings of $2.45 per share.
Carnival (CCL) – Carnival operates multiple cruise line brands across global destinations. It has a Strong Buy analyst consensus rating and an average price target of $35.47, implying a 21.76% upside potential from the current levels. With a P/E ratio of 14.62x, the stock is priced at a 23.9% discount to the Consumer Cyclical sector’s median of 19.22.
Last month, Carnival delivered a “beat and raise” report for Q3. Looking ahead, the company said 2026 bookings are strong, with nearly half the year already sold at higher prices. Its new Celebration Key destination is also gaining traction and is expected to welcome 2.8 million guests next year.
What Is TipRanks’ Smart Value Newsletter?
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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