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.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
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
Nomad Foods (NOMD) – Nomad Foods is a leading frozen foods company in Europe, known for brands like Birds Eye, Findus, and Iglo. It has a Strong Buy analyst consensus rating and an average price target of $18.92, implying a 43.88% upside potential from the current levels. The company’s P/E of 8.81x reflects a 59% discount to the Consumer Defensive sector’s median of 21.5.
NOMD stock was up 1.4% on Tuesday. Earlier this month, Nomad disclosed a new plan to save €200 million in operating costs between 2026 and 2028. It also set financial goals for that period, aiming for 1–3% yearly growth in adjusted EBITDA and a 15% boost in free cash flow.
Alaska Air (ALK) – Alaska Air focuses on regional and international travel, offering business services, loyalty programs, and corporate travel solutions. Its average price target of $72.70 implies a 46.04% upside potential from the current levels. ALK stock has a Strong Buy consensus rating. Trading at a P/E of 20.5x, the company is valued 16.9% below the Industrials sector’s median multiple of 24.67.
On September 15, Alaska Air said it expects third-quarter earnings to come in near the low end of its $1.00 to $1.40 forecast, mainly due to high fuel prices and summer-related operational issues that raised costs. The analyst consensus is pegged at $1.26 per share.
Regeneron Pharmaceuticals (REGN) – This biotechnology company develops innovative medicines for several diseases, such as eye conditions, cancer, and autoimmune disorders. It has a Strong Buy analyst consensus rating and an average price target of $739.95, implying a 31.6% upside potential from the current levels. With a P/E ratio of 14.13x, the stock is priced at a 45.3% discount to the Healthcare sector’s median of 25.82.
Recently, Regeneron disclosed that the FDA has approved Evkeeza, an injectable medication, for children ages 1 to under 5 with a rare genetic cholesterol disorder, HoFH. The drug was previously approved for older age groups and reviewed under the FDA’s Priority Review program.
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.
Stay ahead of the market – subscribe now!