Welcome to Extreme Investor Network, where we bring you unique insights and valuable information to help you make the most of your investments. In today’s blog post, we will be discussing several stocks that appear cheap after the recent market volatility, presenting a great opportunity for long-term gains.
After the global market sell-off, many stocks are still trading below their highs and are now sporting more attractive valuations. At Extreme Investor Network, we searched for S & P 500 stocks that are considered “cheap” relative to the broader market, with the following criteria in mind:
– Forward valuation less than S & P 500’s overall forward price-to-earnings ratio
– Cheap relative to their sector and the broader market
– Upside potential of 10% or more according to analysts’ average price target
– 5% or more gain over the past month
– Consensus analyst buy or overweight rating
One stock that stands out is PayPal, with the highest potential upside of 23.10% according to analysts’ average price target. The company has a price-to-earnings ratio of 14.1 over the next 12 months, lower than the broad market index. After surpassing second-quarter expectations, analysts have shown renewed enthusiasm for PayPal, with Bernstein analyst Harshita Rawat upgrading shares to outperform and raising the price target.
Another interesting stock is Oreo maker Mondelez International, with an average price target implying shares could gain roughly 13.7%. Despite being down year-to-date, the stock is up more than 9% this quarter following a strong second-quarter beat. Goldman Sachs named Mondelez among its buy-rated packaged food stocks, citing above-average earnings growth and high-quality core holding status.
Molina Healthcare, a stock tied to Medicare, is another potential long-term winner. Despite pressure this year, analysts see further growth ahead with a projected gain of 10.5% over the next year. The company posted better-than-expected quarterly results and reaffirmed its strong full-year forecast, leading to a rebound in shares this quarter.
At Extreme Investor Network, we believe these stocks present great opportunities for long-term gains. Other stocks to keep an eye on include toymaker Hasbro, food company Kraft Heinz, and insurance company Assurant. Stay tuned for more valuable insights and recommendations to help you navigate the world of investing with confidence.