Making an investment in undervalued stocks can lead to a significant growth should the stocks rally and go up in value. This is good news for investors when conditions are right and if the company is solid and stable. There are quite a few factors that analysts take into consideration before making a recommendation about a particular stock. There are hundreds of undervalued stocks on the market but not all are a good risk for investors. Analysts have compared the current value placed on these stocks, along with with their 52-week highs, and the analyst consensus of the ideal target price, or what they figure it should be to show the potential for growth should the stock rally and reach its agreed-upon target price. We’ve compiled a list of the 20 most undervalued stocks with a focus on those that are the most likely to result in a rebound or rally with growth in the near future for your consideration.
20. Cisco Systems
Ticker symbol: CSCO
Cisco Systems is listed on the NASDAQ stock exchange. It is a leader in the technology area and the company has successfully completed a series of acquisitions. Cisco has bought back a large share of its own stock. Current share prices have decreased from a 52 week high of $58.26 to a low of $46 per share. This significant drop places it in the category of an undervalued stock because its consensus target price is set at $52.16. Reaching this target figure would represent a gain of 13 percent, which analysts indicate is possible if not probable. Investors may also want to consider the fact that Cisco’s dividend yield is currently 3.0f% and would have yet more added onto this should it reach the agreed-upon fair value.
19. Exxon Mobil
Ticker Symbol: XOM
Exxon Mobile is listed on the NYSE. Since Exxon is in the energy sector, it has become the subject of market speculation and has been avoided by many investors who are steering clear of the gas and oil markets. She market value of the largest American oil company is nearly $300 billion, down from a few years ago, but the stock has a consensus target price of $78.36. Within the 52 week range, it has fluctuated between $64.65 to $83.40. The current price is at $70 per share which indicates that there is still room to profit from reaching its target.
18. Home Depot Inc
Ticker symbol: HD
Home Depot is listed on the NYSE and is currently listed for a price of $216.00 per share. This is a decrease from its 52 week high that reached $239. 31. The target price for the share is $233.34 which means that it is undervalued by approximately 8% of its target and 11% of its 52 week high. The dividend yield set for Home Depot is riding at 2.5%. The prior year the stock underperformed and much is dependent upon the housing market and consumers making repairs in 2020.
Ticker symbol: IBM
IBM, short for International Business Machines Corp is listed on the NYSE. It has gone through a period of stagnation during a time when the economy has been in good condition. It’s been in a decline with a 52-week high of $152.95, down to a current price of $134.25. Analysts agree that the target price would land at approximately 10.5% of its current valuation. Investors have a dividend yield of 4.7%
Ticker symbol: MCD
McDonald’s is listed on the NYSE with shares that are currently $197.50 down from a 52-week high of $221.93. Analysts agree the target price is $222.53, which represents a 12% growth potential. The fast-food giant currently offers a dividend yield of 2.5%. When you look at the history of the company, it has recently undergone a series of changes due to the loss of its CEO as the result of a relationship with a subordinate that was considered to be against the rules of the company. The hope is that the fast-food restaurant executives are making plans for a recovery to get back on track in the growth and expansion of the franchise.
15. Petroleo Brasileiro
Ticker symbol: PBR
Petroleo Brasileiro S.A. is listed on the NYSE with the expectation that sits will see a rise in the value of its equity of 45 percent by 2021. Due to issues with the Brazilian government and their controlling interest in the company, there have been significant financial losses. The stock is currently viewed as being cheap with a price to earnings ratio of under 13 with the potential or target that would take it to 28%. The stock is undervalued but projections show a period of capital spending through 2024 with new ventures in offshore projects which could bring about a period of growth, however, governmental interference must also be considered by investors.
14. Royal Dutch Shell
Ticker symbol: RDS-A
The current price of Royal Dutch Shell stocks is down by 3.4% of the consensus of the target price of $76.03. Share prices are hovering near $58.60 currently. The company is in the process of negotiating for the acquisition of Endeavor Energy to add to the daily production of oil by 64,000 barrels which could have a significant impact on the company stock. The company has made the statement that there are plans in the works to become the largest producer of electricity in the world within the next decade.
13. Kinder Morgan
Ticker symbol: KMI
Kinder Morgan Inc. is listed on the NYSE and has had a few issues along with way. In 2015, the dividend amount dropped from $2 to $.50 in 2016 then rose again to $1 in 2019. The stock prices rose by almost 30% over the past 52 weeks and the expectations are for a potential rise of 7.3% with a rise from the current stock price of $20.50 to a target of $22.00 per share. The company expects to see a higher distributable cash-flow of $5.1 billion for 2020 which is up from the previous $2.2 billion for 2019.
12. Enterprise Products Partners
Ticker symbol: EPD
Enterprise Products Partners L.P. is listed on the NYSE is an MLP that has incurred plenty of debt. With a market cap of $61 billion and a long-term debt that is nearly $25 billion, the distributable cash flow is solid. The opening stock price for 2020 was just under $25 per share adn climbed to $28.30 The consensus target price for the stock is set at $34.80 which implies that it has an upside of 23%, at least in potential.
Ticker symbol: LTHM
Livent Corporation is listed on the NYSE adn is a prominent company in the lithium business. With the increasing demand for lithium-ion batteries, demand for the product is high. The company recently went public with a share price plummeting by half since going public. This is due to the lack of demand from the country of China. A new agreement that has been reached with an electronics company in South Korea may be its saving grace. Stock is currently at $8.60 per share and has a consensus target of $9.44 which suggests a 10 percent upside from the current valuation.
10. Sun power
Ticker symbol: SPWR
SunPower Corporation is listed on the NASDAQ exchange. The company manufactures solar panels. It is the second-largest company of its type in the United States The current price per share of SunPower stock is around $7.90 with a target price of $8.96 over the next 12 months. There is a potential upside of 14%.
9. Parsley Energy
Ticker symbol: PE
Parsley Energy Inc. is listed on the NYSE. This is a smaller oil company that has made an impressive jump of ten percent in market value over the past 52 weeks. The company recently acquired Jagged Peak Energy which was a significant competitor. Production is expected to increase by ten percent in the next year. Stock prices are currently valued at $17.84 per share with analysts agreeing that the target price is $24.26 for a 36% implied upside for investors to consider.
Ticker symbol: SNE
Sony saw a rally in price with a jump from $54.50 per share to $70. The average trading has lingered around $60. Although it’s showing a stable pattern at this time, it’s important to note that Sony has plans to release the new Sony Playstation 5 sometime in 2020. This will give the company a huge revenue boost. The stock is currently $10 down from its 52-week high, but the fact that there’s a new product on the horizon gives us confidence that the stock is likely to soar as the new game console is released.
Ticker symbol: ABBV
AbbVie stock took a dive to $115 per share then peaked at $165 a month later during the summer of 2019. The company acquired Allergan for $63 billion which means it will gain the production of Botox and other pharma products. In addition, Allergan has multiple promising candidate drugs awaiting FDA approval. Shares rose from $62.66 to $71.55 with a dividend yield of 5%, and it plans to cut debt while increasing its dividend payments. It’s still considered to be an undervalued stock with the new acquisitions and the potential for some tremendous growth in the near future.
Ticker symbol: VOD
Vodafone is listed on the NASDAQ. Telecom stocks were out of the grace of investors for a period of time in the past 52 weeks but they’re returning as a more desirable option. Vodafone hit a low last May and it is just starting its climb back towards the positive. With the trend for telecom gaining favor with investors, it’s likely that this undervalued stock will reach its target price during 2020. The company is expanding its infrastructure and is predicting higher revenue growth in the near future. With marketing efforts making attractive offers, the growth of its business in the UK and its new 5G service with cost savings, VOD stock is one to consider while it is still hovering in the undervalued category.
Ticker symbol: CLS
Celestica is listed on the NYSE. It hovered in the $6 trading range surging with a high for the first quarter start of 2020 to $8. Celestica is an equipment supplier for smart energy, health tech, industrial, defense, aerospace adn capital equipment. They offer servers and storage and there is every reason to believe that it is going to expand the capital equipment sector of its business. It’s downsized to compensate for lower revenues but Celestica is making all of the right moves for achieving success in other areas. Predictions are for the already undervalued stock to continue in its pattern of underperformance with the potential for surging in the future.
Ticker symbol: INVA
Innovia is a drug company that is listed on the NASDAQ stock exchange. The company took a drop over the past 52 weeks due to a competitor’s generic drug that pushed investors to fear decreasing sales and revenue for their brand name product. Although royalties are received from the competitor, the stock fell as investors lost confidence. This was a clear overreaction that placed the stock in a state of being severely undervalued. Amazingly, the consumer demand for the brand name product didn’t decrease and the price didn’t drop.
3. Shopper 360
Ticker symbol” SGX:1F0
Shopper 360 Ltd is a company that provides shopper marketing services. It’s an investment holding company that earns money through in-store advertising, digital marketing, events management, sampling activities, investment holding, and related activities of the business. The company is based in Malaysia and was founded toward the end of 2016. This is another stock that is undervalued. Analysts agree that it has the potential to reach its target price with a sixteen percent profit potential for investors. Shopper 360 pays a five percent dividend yield. The share price is currently SGDO.12 with a net asset valuation of SGDO.139.
2. PNE Industries
Ticker symbol: SGX: BDA
This company is another investment holding company that designs, manufactures and sells electronic products. The two business segments that it operates through are contract manufacturing and trading. The company’s headquarters are in Singapore and it has been active since September of 1999. This is a stock that is undervalued by 23% Analysts agree that it has a high potential for reaching the consensus target price in the year 2020. PNE Industries pays a dividend yield of 7.6%.
1. Brook Compton
Ticker symbol: SGX: AWC
Brook Compton Holdings Ltd is involved in the activity of distributing electric motors and offering management services. The company serves markets in North America, the United Kingdom, and the Asia Pacific. Headquarters are located in Singapore. Brook Compton is a stock that is currently undervalued and the consensus for the target price for stock gives it the potential for a 23% profit. The company pays a dividend yield of 2.7%.This company has been in business since 1947.